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In an isovolumetric process
Bad Debts Expense
The cost associated with accounts receivable that a company is unable to collect, considered as a non-recoverable loss.
Allowance Method
An accounting technique used to estimate and account for doubtful debts, reducing accounts receivable to a more realistic value.
Allowance for Doubtful Accounts
A contra-asset account that reduces the total receivables reported on the balance sheet to reflect the amount expected to be uncollectible.
Accounts Receivable
Money owed to a company by its customers for goods or services sold on credit.
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