What does the allowance for doubtful accounts represent?

Question

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The allowance for doubtful accounts represents the estimated amount of accounts receivable that are expected to be uncollectible. It is calculated by subtracting the estimated bad debt expense from the total accounts receivable balance. This represents the difference between the recorded value of accounts receivable and the net realizable value of accounts receivable, which is the amount that the company expects to collect after accounting for estimated bad debts. A represents actual bad debt losses, B represents the amount already written off, and C represents the total credit sales and collections, which are not relevant to the allowance for doubtful accounts.

What Does the Allowance for Doubtful Accounts Represent