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Financing Charge
An interest or fee paid for the use of borrowed money.
Uncollectible Accounts
Accounts receivable that are recognized as unlikely to be collected, leading to their write-off as bad debts.
Bad Debt Expense
An expense reported on the income statement, reflecting the cost of credit sales that are not expected to be collected.
Terms 2/10 N/30
A common payment term in business indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the full invoice price is due in 30 days.
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