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Figure 35-1
In the accompanying figure, the structure labeled as 3 is:
Bad Debt Expense
An expense account reflecting the estimated amount of receivables that are not expected to be collected due to customer defaults.
Loan Receivables
Claims or financial assets arising from money lent to borrowers by an entity.
Loan Loss Provision
An expense set aside as an allowance for bad loans (customer defaults or terms renegotiation), reflecting expected losses on the balance sheet.
Earnings Benchmarks
Measures or standards against which the financial performance of an individual or company can be compared or assessed.
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