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Uncollectible
Refers to accounts receivable that a business deems unlikely to be collected and writes off as a loss.
Direct Write-off
A method for accounting for bad debts whereby debts deemed uncollectable are written off directly against income at the time they are determined to be uncollectable.
Allowance Method
An accounting technique used to estimate and account for doubtful accounts, reducing accounts receivable to their net realizable value.
Direct Write-off Method
A method used in accounting to write off bad debt expenses when a company decides an account is uncollectible, directly affecting the income statement.
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