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Allowance Account
An account used in accrual accounting to estimate future adjustments, such as doubtful accounts or returns, affecting the value of asset accounts.
Percentage of Sales
A financial ratio illustrating how a particular figure on the financial statements reflects a certain percentage of the total sales.
Percentage of Receivables
A method used to estimate the amount of bad debt expense by calculating a fixed percentage of accounts receivable to be uncollectible.
Uncollectible Accounts
Accounts receivable that a company has determined are unlikely to be collected and written off as an expense.
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