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Allowance Methods
Accounting techniques used to anticipate and account for future loan losses by establishing an allowance for doubtful accounts.
Bad Debt
Money owed to a company that is unlikely to be paid by the debtor, often leading to the creditor writing it off as a loss.
Percentage of Sales
A method used to forecast financial figures, such as net income or expenses, based on a percentage of the sales volume.
Dishonored
Refers to a check or promissory note that has been refused by the bank on which it was drawn because of insufficient funds or other reasons.
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