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Direct Write-Off Method
An accounting method where bad debts are written off as an expense only when they are deemed to be uncollectable.
Bad Debt Expense
The estimated amount of credit sales that a company does not expect to collect due to customer's inability to fulfill payment obligations.
Uncollectible
Financial term referring to accounts receivable that are considered unlikely to be collected due to debtor default.
GAAP
Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.
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