Examlex
Fill in the correct labels for the following figure using the word bank below.
-D __________
Bad Debt Expense
A provision for accounts receivable that are considered unlikely to be collected.
Percentage of Credit Sales
An accounting method used to estimate bad debts expense by applying a fixed percentage to the total credit sales of a period.
Allowance Account
An accounting reserve established to adjust the carrying value of accounts receivable to their net realizable value, recognizing potential losses from uncollectible accounts.
Written Off Accounts
Accounts receivable that a company deems uncollectible and removes from its books.
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