Question: Explain why the allowance method is used in accrual basis accounting? Explain the aging of accounts receivable method? Explain the purpose of the acid-test ratio

Explain why the allowance method is used in accrual basis accounting?

Explain the aging of accounts receivable method?

Explain the purpose of the acid-test ratio and the days' sales in receivables ratio?

Give some examples of internal control procedures for receivables?

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