When bad debts are estimated, why is the balance in Allowance for Doubtful Accounts considered when the percentage of accounts receivable approach is used but not when the percentage of net credit sales approach is used ...

When bad debts expense is estimated by using the perc ...

When bad debts are estimated, why is the balance in Allowance for Doubtful Accounts considered when the

Question:

When bad debts are estimated, why is the balance in Allowance for Doubtful Accounts considered when the percentage of approach is used but not when the percentage of net credit sales approach is used?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...