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Rom4ik [11]
2 years ago
8

What is the estimated bad debt expense using the percentage of credit sales method

SAT
1 answer:
sveta [45]2 years ago
8 0

Answer:

Percentage of sales method is an income statement approach for estimating bad debts expense. Under this method, bad debts expense is calculated as percentage of credit sales of the period. The percentage to be applied to credit sales is calculated on the basis of past experience and other factors such as change in credit policy.

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