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Allowance for Doubtful Accounts
An accounting method that reduces accounts receivable on a company's balance sheet by estimating the amount of receivables that will not be collected.
Uncollectible Receivables
Debts owed to a company that are considered unlikelihood to be collected.
Bad Debt Expense
Unrecoverable amounts from accounts receivable representing financial losses for a company.
Direct Write-off Method
An accounting practice where actual bad debts are written off against income at the time they are identified as irrecoverable.
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