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Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
David
Bad Debts Expense
An expense reported on the income statement, representing the estimate of receivables that are not expected to be collected.
Contra Account
An account used in the ledger to offset a related or a parent account, often showing the amount of reductions or adjustments to the main account.
Sales Account
An account in the general ledger that records the sales of goods or services.
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