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To write clear and direct business messages, it's important to avoid clichés.
Income Statement Approach
A method for creating an adjusting entry for bad debts by estimating uncollectible accounts based on income statement figures.
Aging
The process of categorizing accounts receivable based on how long an invoice has been outstanding to determine credit risk.
Direct Write-Off Method
An accounting method used to recognize bad debts at the point when specific accounts are deemed uncollectible, directly impacting the income statement.
Allowance Method
An accounting technique used to manage accounts receivable and bad debt by estimating uncollectible accounts at the end of each period.
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