Examlex
The ______ abnormality has been linked with criminality.
Allowance for Doubtful Accounts
A contra-asset account that reduces accounts receivable to its net realizable value, representing estimated uncollectible amounts.
Liability Account
An accounting record that tracks the money owed by a business to creditors, lenders, and suppliers, part of the company's liabilities.
Direct Write-Off Method
This accounting practice writes off bad debts directly against income at the time they are determined to be uncollectible, bypassing any allowance account.
Allowance for Doubtful Accounts
This is an estimation of the amount of receivables that a company does not expect to actually collect, reflecting potential losses due to customers' inability to pay.
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