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Allowance Method
An accounting technique used to estimate and account for doubtful accounts, providing a more accurate reflection of realizable revenue.
Cash Realizable Value
The amount of money that can be expected to be received from receivables or other assets, after accounting for any discounts or allowances.
Allowance Method
An accounting technique that estimates and deducts accounts receivable deemed uncollectible from total accounts receivable.
Allowance for Doubtful Accounts
A contra-asset account designed to anticipate the amount of accounts receivable that might be uncollectible.
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