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Playing the hot-or-cold game,where you direct someone to move around the room toward a goal known only to you by telling the person whether he or she is getting warmer or cooler,is an example of which behavioral process?
Allowance for Doubtful Accounts
An estimation of the amount of accounts receivable that may not be collected, which is used to adjust the gross accounts receivable to its net realizable value.
Estimate
An approximate calculation or judgment of the value, number, quantity, or extent of something, often used in planning and decision-making.
Balance Sheet Approach
A method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the Allowance for Doubtful Accounts will bring the new balance of that account to the new required level.
Bad Debts Expense
The portion of receivables that a company does not expect to collect and writes off as a loss.
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