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Why is the adoption procedure relatively cumbersome and elaborate?
Aging Report
A financial report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.
Allowance for Doubtful Accounts
This is a contra-asset account that reduces the total amount of accounts receivable reported on the balance sheet, reflecting the estimate of non-collectible amounts due to credit sales.
Uncollectible Accounts
Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss.
Adjustment
A modification made to financial records to correct or update them.
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