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Cash Realizable Value
The amount of money that could be realized from assets if they were sold, after settling any associated costs.
Allowance Method
The allowance method is an accounting technique that enables companies to anticipate and adjust for expected bad debts or credit losses in their financial statements.
Direct Write-off Method
Accounting practice where uncollected receivables are directly written off against income when deemed uncollectible, without using an allowance account.
Bad Debt Expense
A financial accounting concept representing the amount of uncollectible accounts receivable that a company expects to write off as a loss.
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