If the receivable is not repaid, the unpaid amount is recognized as an adjustment to the bad debt allowance and does not affect revenue, gains, or other financing sources.
The unpaid amount of receivable is seen as an adjustment to bad debt allowance - it doesn't affect financing sources. 
mnli hypothesis: The unpaid amount of receivable is seen as an adjustment to bad debt allowance - it doesn't affect financing sources.  premise: If the receivable is not repaid, the unpaid amount is recognized as an adjustment to the bad debt allowance and does not affect revenue, gains, or other financing sources.