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The United Nation created the Human Development Index to recognize factors that are not exclusively economic, but do contribute to overall human well-being. What are three criteria used to determine a country's HDI score?
Bad Debts Expense
An expense reported on the income statement, representing the estimated amount of credit sales that are not expected to be collected.
Allowance for Doubtful Accounts
A contra-asset account used to estimate the portion of accounts receivable that may not be collectible.
Bad Debts Expense
A non-cash expense that represents accounts receivable that a company no longer expects to collect, indicating customers are unlikely to pay their outstanding debts.
Allowance Method
An accounting technique used to estimate and account for potential uncollectible accounts receivable as an expense against current period income.
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