Estimates

Educated guesses or approximations.

Chi deducts 2% in bad debt expense every year. She is guessing or estimating that 2% of her credit customers will not pay her. The 2% is not a complete guess because every year for the past 10 years approximately 2% of her customers have not paid. We would say she is estimating or taking an educated guess.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/estimates/