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Water reabsorption
Contra-Revenue Account
An account that is used to record reductions in gross revenue, such as sales returns, allowances, and discounts.
Allowance Method
An accounting technique used to account for bad debts by estimating uncollectible accounts at the end of each period.
Bad Debt Expense
An expense reported on the income statement, representing the amount of receivables that a company does not expect to collect due to customer default.
Current Assets
Resources owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.
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