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What is the reason for pooling costs?
Allowance Method
An accounting technique that estimates and reduces accounts receivable to reflect only amounts expected to be collected.
Allowance Method
A technique in accounting used to account for bad debts, where anticipated uncollectible accounts receivable are estimated and recorded.
Adjusting Entry
Journal entries made in accounting to update records for expenses and revenues not recorded during an accounting period.
Bad Debt Expense
The estimated amount of accounts receivable that a company does not expect to collect, recognized as an expense on the income statement.
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