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Your company uses the aging of accounts receivable method. Net credit sales are unchanged from last year, the year-end balance in Accounts Receivable is unchanged
Your company uses the aging of accounts receivable method. Net credit sales are unchanged from last year, the year-end balance in Accounts Receivable is unchanged from the previous year's ending balance, and there were no write-offs during the current year. The company previously averaged about 20 percentage of its total accounts receivable in the 'over 90 days past due" category and now has 35 percentage in this category at the end of the current year. The dollar amount of the adjustment to record Bad Debt Expense in the current year decline, thus increasing the ending balance of the Allowance for Doubtful Accounts account. increase, thus increasing the ending balance of the Allowance for Doubtful Accounts account. decline, thus reducing the ending balance of the Allowance for Doubtful Accounts account increase, thus reducing the ending balance of the Allowance for Doubtful Accounts account
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