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Direct Write-Off Method
An accounting practice that involves directly writing off an outstanding receivable if deemed uncollectible, impacting earnings directly.
Adjusting Entry
Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.
Direct Write-Off Method
An accounting method used to recognize bad debts only when specific receivables are deemed uncollectible, without maintaining an allowance account.
Allowance Method
An accounting technique that estimates and sets aside a portion of accounts receivable that may not be collectible, reflecting potential losses.
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