Your company has previously averaged about t16% of its accounts receivable in the over 90 days...
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Your company has previously averaged about t16% 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 recelvable 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 uncollectible. decrease over the estimate for previous months ncrease over the estimste for previous months Your company has previously averaged about t16% 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 recelvable 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 uncollectible. decrease over the estimate for previous months ncrease over the estimste for previous months
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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