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Aging Method
An accounting technique used to estimate the amount of bad debts (uncollectible accounts) by categorizing accounts receivable according to their age (how long they have been outstanding).
Allowance Account
A contra asset account associated with accounts receivable that estimates the amount of receivables that may not be collected.
Doubtful Accounts
An estimate of the debts owed to a company that may not be collected, often listed as a contra account to accounts receivable.
Accounts Receivable
Funds that are yet to be paid by customers for the products or services they have received from a business.
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