Posted: March 24th, 2017

Due to the increased volume in sales, you have started noticing more bad debt and want to use the allowance method for estimating bad debt. Would you use the percentage of sales method or the percentage of accounts receivable method and why?

You have started a business that has now been going for a couple of years. Due to the increased volume in sales, you have started noticing more bad debt and want to use the allowance method for estimating bad debt. Would you use the percentage of sales method or the percentage of accounts receivable method and why?

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