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Judgment & ambiguity · Calibrating confidence

You're setting the allowance for doubtful accounts and the aging looks stable, but two mid-size customers are showing slower payments and one industry you're exposed to is softening. How sure are you in the reserve you land on, and how do you say so to the controller?

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I'd be honestly moderately confident, not precise, and I'd say exactly that.

The full answer: structure, worked example, likely follow-up.

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