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Which of the following is an incremental and anticipatory approach to change?
Bad Debt Expense
This represents the estimate of non-collectible accounts receivable that occurs in a given period, reflecting potential losses due to credit sales.
Credit Sales
Sales transactions where the payment is delayed as opposed to immediate cash payment, generating accounts receivable.
Adjusting Entry
An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.
Allowance for Doubtful Accounts
A contra asset account that represents an estimate of the amount of accounts receivable that may not be collectible.
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