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A production process would create just 1 defect per six thousand products at Six Sigma.
Allowance for Doubtful Accounts
A contra asset account on a company’s balance sheet that represents the amount of receivables it does not expect to collect.
Credit Sales
Sales transactions where the customer is allowed to pay at a later date, typically generating accounts receivable.
Bad Debt Expense
Represents the expense associated with accounts receivable that a company does not expect to collect.
Service Charge Expense
Costs charged to customers for services provided, including fees for maintenance, support, or other service-related activities.
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