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The ethical stage involves a commitment to
Uncollectible
Accounts receivable that are considered unlikely to be recovered and may be written off as a bad debt expense.
Adjusting Entry
An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.
Bad Debt Expense
The cost associated with accounts receivable that a company does not expect to collect due to customer default.
Allowance For Doubtful Accounts
The contra asset account for accounts receivable.
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