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Add or subtract.
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Allowance for Doubtful Accounts
A contra-asset account that estimates the portion of accounts receivable which may not be collectible.
Bad Debts Expense
An expense account reflecting estimated uncollectible accounts receivable.
Percent of Sales Method
A forecasting technique used in finance to predict future variables such as assets, liabilities, and expenses, based on projected sales figures.
Uncollectible
Refers to accounts receivable that a company has determined cannot be collected from customers.
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