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Why is it important to use a reasonably accurate method for valuing accounts receivable each year to create an appropriate charge off to bad debt
Why is it important to use a reasonably accurate method for valuing accounts receivable each year to create an appropriate charge off to bad debt expense and create an allowance? Also, why is it important to value inventories in accordance with the concept of Lower of Cost or Market? How do these two techniques improve the accuracy of financial statements, and further compliance with the accounting principles of matching and conservatism? (Note: Please answer both parts of the question.)
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