Doubtful Debts

Netting Off
An accounting method where one amount is deducted from another. It helps to reflect a more accurate financial position by deducting provisions or allowances from gross figures.
Provision for Bad Debts (Allowance for Doubtful Accounts)
A financial estimate calculated to cover debts deemed uncollectable during an accounting period. It distinguishes between general and specific provisions based on the likelihood of debt recovery.

Accounting Terms Lexicon

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