Chapter-8BarryBus21

Net credit sales for the period historical bad debt

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Unformatted text preview: sales for the period Historical bad debt loss rate = Bad debt expense of the period. 13 14 Aging of Accounts Receivable While the percentage of credit sales method focuses on estimating Bad Debt Expense (income statement approach) for the period, the aging of accounts receivable method focuses on estimating the ending balance in the Allowance for Doubtful Accounts (balance sheet approach). The aging method gets its name because it is based on the "age" of each amount in Accounts Receivable at the end of the period. The o...
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