After we have covered some basics about the allowance method of accounting for bad debts, let’s review in more detail the percentage-of-sales and percentage-of-receivables approaches. Under the percentage of sales basis, the company calculates bad debt expense by estimating how much sales revenue during the year will be uncollectible. petty cash Moreover, the technique can offer high-quality estimates for items that closely correlate with sales. Businesses utilize the results ...
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SEP
2023
SEP
2023
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