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Allowance Method
An approach in accounting that calculates expected losses from bad debts by assessing uncollectible accounts at the conclusion of each period.
Estimated Bad Debts
A provision in accounting for the amount of receivables that are expected not to be collected, considered an expense.
Accounts Receivable Turnover
A financial ratio indicating how many times a company's receivables are turned over during a period.
Specific Accounts
Refers to accounts designated for specific purposes or transactions, distinguishing them from general or combined accounts.
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