ALLOWANCE METHOD Definition

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ALLOWANCE METHOD is the accepted way to account for bad debt. Bad debt expense may be based on the percent of credit sales for the period, an aging of the accounts receivable balance at the end of the period, or some other method, e.g., percent of accounts receivable.

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COUPON RATE is the annual interest rate of a bond.

INDIVIDUAL INVESTOR is a person that buys or sells securities for his/her own account. The individual investor is also called a retail investor or retail shareholder.

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