Examlex
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Bad Debts Expense
Bad debts expense is the cost to a business of accounts receivable that are not collected because customers are unable to pay.
Allowance for Doubtful Accounts
An accounting provision made for accounts receivable that may not be collectible.
Balance Sheet Approach
A method of estimating allowances and provisions based on the balances of assets and liabilities, rather than focusing primarily on income statement items.
Income Statement Approach
A method of accounting or financial analysis focusing on revenues, expenses, and net income to evaluate a company's performance over a period.
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