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The following approaches are used to estimate the uncollectible receivables under the allowance method: The percentage of sales approach (also known as income statement
The following approaches are used to estimate the uncollectible receivables under the allowance method: The percentage of sales approach (also known as income statement approach) estimates the amount of bad debt expense as a percentage of net credit sales 4 The percentage of receivables approach (also known as balance sheet approach) estimates the amunt of bad debt expense as a percentage of accounts receivable
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
