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In a multiple regression analysis, if the model provides a poor fit, this indicates that:
Direct Write-off Method
An accounting method where bad debts are charged against income at the time they are determined to be uncollectible, rather than being estimated and accounted for in advance.
Allowance for Doubtful Accounts
An estimation of the amount of credit sales that are expected not to be collected, representing a reserve for potential bad debts.
Notes Receivable
Legally enforceable claims for money owed to a business by its customers or clients, typically evidenced by a written promise to pay.
Formal Instruments of Credit
Legal documents that acknowledge debt and specify terms of repayment, such as notes payable or bonds.
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