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Which of the following is an IDEO design?
Allowance for Doubtful Accounts
A contra asset account that represents the estimated proportion of accounts receivable that may not be collectable.
Direct Write-off Method
An accounting approach where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.
Uncollectible Accounts Receivable
Debts owed to a company that are considered to be uncollectible from the debtor, often leading to the account being written off as a bad debt expense.
Allowance for Doubtful Accounts
An estimate of the amount of accounts receivable that may not be collectible, serving as a contra account to adjust the value of total receivables.
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