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Manipulative experiments
Allowance Method
An accounting technique that estimates and records bad debts expense from credit sales.
Bad Debt Expense
An expense account representing accounts receivable that a company does not expect to collect and writes off as a loss.
Allowance for Doubtful Accounts
A contra account that reduces the total receivables on the balance sheet to reflect the amount that is expected not to be collected.
Selling Receivables
The process of selling a company's outstanding invoices to a third party to improve cash flow and reduce risk.
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