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The Allowance for Doubtful Accounts, which is reported on the balance sheet as a deduction from accounts receivable, is based on an estimate of bad

The Allowance for Doubtful Accounts, which is reported on the balance sheet as a deduction from accounts receivable, is based on an estimate of bad debts. Estimating bad debts is an application of the

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Materiality constraint.

Revenue recognition principle.

Verifiability characteristic.

Matching principle.

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