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Working capital management involves decisions related to
Bad Debt Expense
Bad debt expense is the cost associated with accounts receivable that a company cannot collect.
Allowance Method
An accounting technique to estimate and record bad debts expense, acknowledging that a certain percentage of accounts receivable may not be collectible.
Aging Receivables
A method of categorizing accounts receivable based on how long they have been outstanding to assess and manage credit risk.
Bad Debt Expense
Represents the portion of receivables that a company estimates it will not be able to collect.
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