What Is the Term of the Following Definintion

question 8

Short Answer

What is the term of the following definintion.
-Included in the Affordable Care Act to enhance access to and lower the cost of insurance to individuals and small groups.

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Definitions:

Uncollectibles

Accounts receivable that a company has determined are unlikely to be collected and writes off as a bad debt expense.

Allowance Method

An accounting technique that anticipates and adjusts for potential future bad debts or credit losses.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Allowance for Doubtful Accounts

A contra-asset account that estimates the portion of accounts receivable which may not be collected, reducing the reported amount of receivables.