Examlex
Which of the following does not belong?
Note
A written agreement acknowledging a debt and promising repayment.
Direct Write-off
A method of accounting for bad debts where uncollectible accounts receivable are written off directly against income at the time they are deemed nonrecoverable.
Allowance Methods
Accounting techniques used to anticipate and account for future loan losses by establishing an allowance for doubtful accounts.
Bad Debt
Money owed to a company that is unlikely to be paid by the debtor, often leading to the creditor writing it off as a loss.
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