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Allowance Method
An accounting technique used to estimate uncollectable accounts receivable within a company's financial statements.
Bad Debt Expense
An accounting term representing the amount of revenue considered uncollectible from credit sales.
Allowance for Doubtful Accounts
A contra-asset account that reduces the total receivables balance to reflect the amount that is expected to be uncollectible.
Allowance for Doubtful Accounts
The allowance for doubtful accounts is an accounting technique to estimate the amount of receivables that are expected not to be collected, acting as a contra account to accounts receivable.
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