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A 5 year old sustained a concussion when falling out of a tree.In preparation for discharge,the nurse is discussing home care with the mother.Which statement made by the mother indicates a correct understanding of the teaching?
Aging of Receivable Method
An accounting technique used to estimate bad debts by analyzing accounts receivable based on the length of time they have been outstanding.
Allowance for Doubtful Accounts
A contra-asset account that represents the amount of receivables a company does not expect to actually collect.
Bad Debts Expense
An expense account reflecting the cost of accounts receivable that a company does not expect to collect due to customer defaults.
Allowance Method
An accounting technique used to account for bad debts by estimating and recording uncollectible accounts receivable.
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