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The Allowance for Doubtful Accounts is where we hedge our receivables in an effort to be conservative. This results in us making entries to Bad

The Allowance for Doubtful Accounts is where we hedge our receivables in an effort to be conservative. This results in us making entries to Bad Debt Expense.

It may seem odd, but when we write off a bad debt against the Allowance for Doubtful Accounts it does not reduce the estimated realizable value of our Accounts Receivables. Why?

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