Examlex
Express the following ratio in its lowest terms:
Allowance for Doubtful Accounts
A contra-asset account that reduces total accounts receivable to reflect the estimated amount of credit sales that may not be collected.
Credit Balance
A positive balance within an account, indicating that a company or individual has received more in deposits than it has spent.
Credit Sales
Sales made by a business that do not require immediate payment, but rather are paid for by the buyer at a later date.
Analysis of Receivables Method
A technique used in accounting to estimate the amount of receivables that will likely remain uncollectable.
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