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explain the meaning of this information in terms of the three steps described above 615030

The accounts receivable footnote in RadioShock”s 2008 annual report provided the following information (dollars in millions).

The change in the allowance for doubtful accounts is as follows:

Balance at the beginning of the year

$2.5

Provision for bad debts

0.6

Uncollected receivables written off

(1.6)

Balance at the end of the year

$1.5

Explain the meaning of this information in terms of the three steps described above.

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