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2 years ago

How can a company limit bad debts?

Business

2 answers:

xxTIMURxx [149]2 years ago

8 0

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How can a company limit bad debts?

<h2>• Answer •</h2>

Filter your customers. Not all customers are good for your business.
Require up-front payments.
Set reasonable credit limits.
Provide clear payment terms and penalties.
lmprove your accounting.Implement strict collection procedures.
Use cloud-based software for debt collection.

elena-s [515]2 years ago

3 0

Answer:

The best way of controlling bad debts is not to provide credits to everyone. As more amount of credit will be given to the people, the risk of bad debts will increase. The funds left should be used for the development of the company.

Explanation:

hope it helps :)

pls mark brainleist :P

Tori

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Scorpion4ik [409]

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Explanation:

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3 years ago

The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept certai

Stolb23 [73]

Answer:

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Income statement for the year 2014

Sales (100/8 × $100,000) $1,250,000

Less Cost of Sales

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Add Purchases $481,600

Less Ending merchandise ($92,000 - 20%) ($73,600) ($500,000)

Gross Profit $750,000

Less Expenses :

Sales Discounts $17,000

Interest expense $20,000

Administrative expenses ($500,000 × 20%) $100,000 ($137,000)

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Explanation:

Notes on income statement preparation

Use the statistical data to fill in the line items of the Income Statement as shown above.

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3 years ago

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xxTIMURxx [149]

Answer:

threats

Explanation:

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2 years ago

Schreiber Industries estimates bad debts at 2% of sales. Schreiber began the year with $270,000 of accounts receivable and $38,6

lorasvet [3.4K]

Answer:

The total amount of account receivable it's $246.400

Explanation:

At the beginning the company had $270.000 in the account receivable and $38.600 of allowance for bad debt, when the company wrote off bad debt, it entry a credit in the Account Receivable and a Debit in hte Allowance for bad debt.

The new balance are $244.400 in the accounts receivables and $12.600 as credit in the allowance for bad debt, with the new sales the company generate an extra account receivable of $15.000, so the net value of Accounts Receivable it's $246.400.

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