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Definitions and terms related to accounting for receivables, bad debts, and related concepts such as net receivable value, contra accounts, and interest receivable. Topics include the difference between the income statement and balance sheet, the definition of net receivable value and the allowance for doubtful accounts, the concept of contra accounts and the offsetting of bad debt accounts, the aging method and percentage of receivables method for estimating bad debt expense, and the sale of accounts receivable and notes receivable, as well as the difference between recourse and without recourse financing.
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