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Bad Debts Expense
An estimated expense that represents the amount of receivables that are not expected to be collected.
Prepaid Rent
An asset account representing rent payments made in advance of the rental period.
Allowance Method
An accounting technique that estimates and records bad debts expense from credit sales during the period they occur.
Bad Debts Expense
An expense account reflecting amounts that are not expected to be collected from customers or clients previously extended credit.
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