Estimating the bad debts expense by aging accounts receivable generally results in smaller errors than the percentage

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Estimating the bad debts expense by aging accounts receivable generally results in smaller errors than the percentage of credit sales approach. Can you explain why?

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Financial Accounting

ISBN: 9781618533111

6th Edition

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

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Question Posted: Oct 15, 2021 03:55 AM

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Estimating the bad debts expense by aging accounts receivable generally results in smaller errors than the percentage

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The number of defaults tends to rise and fall with the economy For exampl...View the full answer

Financial Accounting

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