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Subtract.
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Collection Efforts
Activities undertaken by a business or organization to pursue and receive payments owed by customers or clients.
Reversing Entries
Journal entries usually made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period.
Allowance Method
An accounting technique used to anticipate and adjust for potential future losses from uncollectible accounts receivable.
Uncollectible Accounts
Accounts receivable that are recognized as not being collectible, leading to a write-off as a bad debt expense.
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