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Use the Quotient Rule
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Allowance for Doubtful Accounts
A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collected.
Bad Debts Expense
The cost associated with accounts receivable that a company is unable to collect, recognized as an expense.
Aging Analysis
An accounting process that categorizes accounts receivable based on the length of time an invoice has been outstanding.
Bad Debts
Accounts receivable that a company determines it will not be able to collect.
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