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Bad Debts Adjustment
An accounting entry made to account for invoices that are not expected to be collected due to customer default.
Accounts Receivable
Represents the money owed to a company by its customers for goods or services delivered but not yet paid for.
Direct Write-off Method
A method of accounting for bad debts that directly writes off specific debts as they are deemed unrecoverable.
Uncollectible Accounts
Uncollectible accounts are debts from customers that a company has attempted to collect but determined they cannot be recovered and are thus written off as a loss.
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