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Allowance for Doubtful Accounts
This is a subsidiary asset account created to approximate the amount of accounts receivable that could potentially be non-collectable.
Bad Debts Expense
An expense account reflecting estimated uncollectible amounts from customers for credit sales made in a specific period.
Aging of Accounts Receivable
A process of categorizing accounts receivable according to the length of time an invoice has been outstanding.
Balance Sheet Approach
An approach to international financial management that focuses on maintaining balance sheet integrity by managing assets and liabilities across different currencies.
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