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Allowance Account
An account used to record adjustments for potential future losses or defaults on receivables, essentially reducing the value of accounts receivable to a more realistic figure.
Accounts Receivable
Debts incurred by customers to a company for using or obtaining its goods or services without making immediate payment.
Allowance Method
An accounting technique that adjusts accounts receivable for the estimated uncollectible amounts.
Accounts Receivable
Unsettled charges owed by clients to a company for the consumption or acquisition of goods or services.
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