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Allowance Method
An accounting technique used to estimate and account for potential uncollectible accounts receivable.
Write-off
The accounting action of declaring that an asset or receivable value is reduced or eliminated, often due to uncollectibility or obsolescence.
Allowance for Doubtful Accounts
A contra-asset account used to estimate the amount of receivables that may not be collectible.
Accounts Receivable
The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
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