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Which of the following is an example of a black-market transaction?
Allowance Method
An accounting technique that estimates and accounts for bad debts expense, reducing accounts receivable by a predicted amount of uncollectible accounts.
Outstanding Receivables
Amounts due to a company for goods or services that have been delivered or sold but not yet paid by customers.
Allowance for Doubtful Accounts
A contra asset account that reflects the estimated amount of accounts receivable that may not be collectible.
Notes Receivable
Written promises for amounts to be received by a business, usually detailing interest and the due date for repayment.
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