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What is a "disaster"? What are three types of disasters? Give an example of each.
Direct Write-off Method
A method for managing uncollectible accounts where specific debts are directly written off against income at the time they are deemed unrecoverable.
Cash Realizable Value
The amount of money that can be received from assets or receivables through normal collection processes.
Allowance Method
A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.
Credit Sales
Sales made by a business where payment is delayed as per agreed terms, allowing the buyer to purchase goods or services on credit.
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