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Bad Debts Expense
An expense account reflecting amounts that are not expected to be collected due to customer defaults.
Bad Debts Recovered
Money that was previously written off as unrecoverable but has since been collected.
Income Statement
A financial document summarizing the revenues, costs, and expenses incurred during a specified period, typically a fiscal quarter or year.
Income Statement Approach
A method for estimating bad debts expense that focuses on income statement relationships, often involving a percentage of sales or accounts receivable.
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