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Ethical issue: Misrepresentation by either the client system or the organizational development consultant.
Allowance for Doubtful Accounts
A contra-asset account that reduces accounts receivable to reflect the estimated amounts that are expected to be uncollectible.
Uncollectible Percentage
An estimated fraction of accounts receivable that a company does not expect to collect.
Aging
A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding.
Allowance Account
An account used in accounting to reduce the value of accounts receivable to a more realistic amount by accounting for potential bad debts.
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