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Company ABC sells goods on wholesale and passes the products to a retailer at 1 2 0 days credit. The company has recorded accounts receivable
Company ABC sells goods on wholesale and passes the products to a retailer at days credit. The company has recorded accounts receivable in its balance sheet and has recognized the revenue. After the days, the company realizes that the debtors have gone bankcrupt and now will no more pay the debt. Thus, the money is irrecoverable and is now considered bad debt. To plan for back up plan or to avoid the same issue in the future, Melody had conducted a study related to the process of offering credit to retailers considering their qualifications when borrowing from the business. In her research, the questionnaire is directed to all personnel of the Accounting Department in charge of approving credit transactions. What measure of central tendency would give Melody the idea on what practice is to be avoided?
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