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If there exists a causal relationship between event A and outcome B, then:
Bad Debts Expense
An expense account reflecting the cost of receivables that a company is unable to collect, considered a cost of doing business.
Accounts Receivable
Represents money owed to a business by its customers for goods or services delivered or used but not yet paid for.
Bad Debts Recovered
The unexpected receipt of payment on accounts previously written off as bad debts, leading to an income entry in the financial statements.
Accounts Receivable
Reflects the funds that a business is entitled to receive from purchasers for transactions on credit.
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