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Which of the following is an example of contractionary fiscal policy?
Allowance Method
An accounting method for estimating uncollectible accounts receivable that involves creating a provision for bad debts as a percentage of the accounts receivable.
Gross Price
The total cost of a good or service without deducting any discounts, taxes, or other expenses.
Net Price
The actual price paid for a product after deducting any discounts, rebates, or allowances from the list or gross price.
Allowance Method
An accounting technique that estimates and records bad debts expense from credit sales based on anticipated losses.
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