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Aging
A method used to categorize accounts receivables based on the length of time the invoice has been outstanding to manage and collect debts.
Allowance for Doubtful Accounts
An estimation of the amount of accounts receivable that may not be collectible, used to create a more accurate report of net income.
Bad Debts Expense
An expense reported on the income statement, representing the estimated amount of receivables that will not be collected.
Uncollectible Accounts
Receivables that are recognized as losses after all attempts to collect the money owed have failed, indicating debts unlikely to be recovered.
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