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Direct Write-off
The direct write-off method is an accounting practice where uncollectible debts are written off as an expense only when they are deemed unrecoverable.
Allowance Method
An accounting technique used to estimate uncollectible accounts receivable and adjust the carrying value of the accounts.
Receivables
Receivables are amounts owed to a company by its customers or other parties for goods or services delivered but not yet paid for.
Uncollectible Accounts
Amounts owed to a company that it does not expect to collect due to customers being unable or unwilling to pay.
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