What does irrecoverable debts and allowance mean?

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Irrecoverable debts are those receivables – whether with interest – that can be reasonably ascertained that their holders will not pay.
Allowance for doubtful accounts, on the other hand, is an estimate of the debts that might not be collected – this means that the company is not reasonably certain about the collectability of the debts.
For more information go to Irrecoverable Debts and Allowances

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~liza
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