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Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future,

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Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balanc sheet misleading because Most short term receivables are not interest bearing - The allowance for uncollectable accounts includes a discount element The amount of the discount is not material - Most receivables can be sold to a bank or factor A trial balance before adjustments included the following: Debit Credit Sales 425000 Sales returns and allowances 14000 Accounts receivable 53000 Allowance for doubtful accounts 760

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