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Allowance Method
An accounting technique used to estimate uncollectible accounts receivable and adjust the balance of accounts.
Uncollectible Accounts
Accounts receivable that are considered unlikely to be collected and written off as a loss.
Quality of Receivables
An assessment of the likelihood that the receivables will be collected on time, reflecting the creditworthiness of a company's customers.
Likelihood of Collection
The probability that debts owed to a company will be paid by its debtors.
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