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Allowance Method
A method used in accounting to estimate and account for bad debts, representing the amount of accounts receivable that may not be collected.
Allowance for Doubtful Accounts
A contra asset account that represents the estimated portion of accounts receivable that may not be collectible.
Allowance Method
An accounting technique used to estimate and account for doubtful accounts receivable and adjust the amount of accounts receivable reported on the balance sheet.
Accounts Receivable
Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.
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