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This excerpt taken from the WBMD 8-K filed Nov 21, 2006. Accounts
Receivable
The carrying amount of accounts receivable is reduced by a
valuation allowance that reflects management’s best
estimate of the accounts that will not be collected. In addition
to reviewing delinquent accounts receivable, management
considers many factors in estimating its general allowance
including historical data, experience, customer types,
creditworthiness and economic trends. From time to time,
management may adjust its assumptions for anticipated changes in
any of those or other factors expected to affect collectibility.
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