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Identify and Describe Three Types of Short-Term Financing

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Essay

Identify and describe three types of short-term financing.


Definitions:

Uncollectible Accounts

Accounts receivable that a business does not expect to collect and writes off as a loss.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Uncollectible Accounts

Uncollectible accounts are debts owed to a company that are considered uncollectable and are written off as a bad debt expense.

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