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Allowance for Doubtful Accounts
An accounting provision representing the estimated portion of receivables that may not be collected.
Accounts Receivable
Represents money owed to a company by its customers for goods or services delivered but not yet paid for.
Bad Debt Expense
The cost associated with accounts receivable that a company is not able to collect from its debtors, recognized as an expense on the income statement.
Net Realizable Value
The estimated selling price of goods, minus the estimated costs of completion and the costs necessary to make the sale, often used in inventory valuation and accounts receivable.
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