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Your company has previously averaged about 15% of its accounts receivable to the over 90 days past due category. This year management forecasts that 20%
Your company has previously averaged about 15% of its accounts receivable to the over 90 days past due category. This year management forecasts that 20% of Its accounts receivable will be in this category at the end of the current year. The company uses the aging of accounts receivable method of estimating Bad Debt Expense. It the total of credit sales and year end balance in accounts receivable temain unchanged from the previous year and no write affs were made during the current at this arbad expense will we donne cerage of cedded once Your company has previously averaged about 16% of its accounts receivable in the over 90 days past due category. This year management forecasts that 20% of its accounts receivable will be in this category at the end of the current year. The company uses the aging of accounts receivable method of estimating Bad Debt Expense. If the total of credit sales and year-end balance in accounts receivable remain unchanged from the previous year and no write offs were made during the current year, this year's bad expense will: Multiple Choice not change wil depend on the percentage of credit sales deemed uncolectible decrease over the estimate for previous months increase over the state for previous months
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