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Uncollectible Accounts
Debts owed to a company that are considered to be uncollectible and are thus written off as a bad debt expense.
Allowance Method
An accounting technique used to estimate uncollectable accounts receivable within a company's financial statements.
Bad Debt Expense
An accounting term representing the amount of revenue considered uncollectible from credit sales.
Allowance for Doubtful Accounts
A contra-asset account that reduces the total receivables balance to reflect the amount that is expected to be uncollectible.
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