Question: Why we can increase the turnovers ratio by adding bad debts expense which decreases the average of net receivable by increasing allowance for doubtful accounts?
Why we can increase the turnovers ratio by adding bad debts expense which decreases the average of net receivable by increasing allowance for doubtful accounts? So does it mean if a company has a high amount of bad debts, the company will have high turnover ratio? It is kind of contradictory...
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
