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Definition of 'Allowance For Doubtful Accounts'
A contra-asset account that records the portion of a company's receivables, which it expects may not be collected. The allowance for doubtful accounts is only an estimate of the amount of accounts receivable which are expected to not be paid. The actual payment behavior of customers may differ substantially from the estimate.
Read more: http://www.investopedia.com/terms/a/allowancefordoubtfulaccounts.asp#ixzz2NGZduLSh
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