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There are only stressors in taking on the caretaking role.
Uncollectible Accounts
Accounts receivable that a company does not expect to receive payment for, often written off as bad debts.
Percentage-of-Receivables Method
An accounting method used to estimate the amount of a company's receivables that will not be collected, based on a percentage of the total receivables.
Allowance for Doubtful Accounts
A contra-asset account that represents the estimated amount of accounts receivable not expected to be collected.
Bad Debts Expense
An expense account that represents accounts receivable that a company does not expect to collect and writes off as a loss.
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