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Need-reduction theory cannot explain why
Credit Sales
Transactions in which goods or services are sold and payment is deferred, allowing customers to purchase products or services on account.
Uncollectible Accounts
Accounts receivable that are recognized as uncollectible losses due to the inability to collect from the debtor.
Allowance Method
An accounting technique used to estimate and account for bad debts (uncollectible receivables) based on historical data or economic conditions.
Allowance for Doubtful Accounts
A contra asset account used to estimate the portion of a company's receivables that may ultimately not be collected.
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