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Bad Debt Expense
An estimated expense recognized by businesses for accounts receivable that are considered unlikely to be collected.
Salvage Value
The projected value of an asset when it reaches the end of its operational lifespan.
Useful Life
The estimated time period an asset is expected to be used by a company before it is no longer useful or becomes obsolete.
Double-Entry System
An accounting system where each transaction is entered twice, as a debit in one account and a credit in another, to ensure the accounting equation is always balanced.
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