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Materiality Constraint
An accounting principle that allows for ignoring minor discrepancies that would not affect the decision-making process of users of financial statements.
Uncollectible Account Receivable
An accounting term for receivables from sales that are considered not collectible, resulting in a bad debt expense.
Uncollectible Accounts
Accounts receivable that a company does not expect to collect and thus writes off as a loss.
Direct Write-off Method
An accounting practice where uncollectable debts are written off against income at the time they are deemed non-collectable.
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