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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MR see MEMORANDUM FOR RECORD.

CORROBORATE is to strengthen with other evidence in order to make more certain.

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