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Why might export pessimism be wrong?
Direct Write-off Method
An accounting method where uncollectible debts are charged directly to expense as they are deemed to be uncollectible, not matching expenses to related revenues.
Allowance Method
An accounting technique that estimates and accounts for bad debts or credit losses in financial statements.
Uncollectible Receivables
Accounts receivable that a company does not expect to collect and writes off as a loss.
Credit Sales
Sales transactions where the payment is deferred to a future date, typically resulting in the creation of accounts receivable.
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