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Bad debt would appear on a Balance Sheet as an allowance for doubtful accounts, which is a contra asset account. This account reduces the total accounts receivable balance to reflect the estimated amount that may not be collectible. The net accounts receivable is shown on the Balance Sheet to provide a clearer picture of the expected cash inflows. Bad debt itself does not directly appear as a line item but impacts the overall financial position indirectly.

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1w ago

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