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The allowance method for recognizing uncollectible account expense ensures that the expense associated with uncollectible accounts is recognized only when a company is certain
The allowance method for recognizing uncollectible account expense ensures that the expense associated with uncollectible accounts is recognized only when a company is certain it won't collect from specific customers customers are allowed extra time to pay off accounts receivable. the expense associated with uncollectible accounts is recognized in the same period as the revenues associated with those accounts companies minimize the number of uncollectible accounts.
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