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Merchandise Sale
The process of selling goods that are purchased for resale, constituting a primary revenue source for retail businesses.
Allowance Method
A method in accounting for managing bad debts by predicting the accounts that cannot be collected at the end of every period.
Direct Write-off Method
An accounting method for recognizing bad debts where the specific uncollectible accounts receivable are written off as they are identified.
Uncollectible Accounts Receivables
Accounts receivable that a company does not expect to collect and must write off as a loss because the debtor is unable to pay the owed amount.
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