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Aging Method
An accounting technique used to estimate the amount of bad debt expense by classifying accounts receivable according to their age.
Credit Sales
Transactions where the buyer is allowed to pay for goods or services at a later date, rather than at the time of purchase.
Interest Rate
A cost, depicted as a percent of the original amount, that a lender demands from a borrower for the right to use resources.
Stated Rate
The interest rate declared on a financial instrument, such as a bond or a loan, which is fixed and does not change over the life of the instrument.
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