Why do companies have an allowance for doubtful debts?

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Financial Accounting An Integrated Approach

ISBN: 9780170411028

7th Edition

Authors: Ken Trotman, Elizabeth Carson

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Question Posted: Aug 20, 2023 06:48 AM

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Why do companies have an allowance for doubtful debts?

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Companies establish an allowance for doubtful debts also known as an allowance for bad debts or provision for doubtful accounts to account for the possibility that some customers may not be able to pa...View the full answer

Financial Accounting An Integrated Approach

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