Abitibi Ltd is trying to obtain a loan from the bank to help finance its growing sales.After meeting with the bank, the sole owner of Abitibi, Abby Thibault, has come to you for help."The bank said it will lend up to 75% of all receivables less than 60 days and has asked to see my aging schedule, whatever that is.They also wanted to know how I estimate bad debts and I told them 'I don't have to estimate, when I stop trying to collect, I just reverse the sale.' The bank told me to get some advice and to come back next week.I am not sure what they want or what I did wrong."
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The Answer of Abitibi Ltd is trying to obtain a loan from the bank to help finance its growing sales.After meeting with the bank, the sole owner of Abitibi, Abby Thibault, has come to you for help."The bank said it will lend up to 75% of all receivables less than 60 days and has asked to see my aging schedule, whatever that is.They also wanted to know how I estimate bad debts and I told them 'I don't have to estimate, when I stop trying to collect, I just reverse the sale.' The bank told me to get some advice and to come back next week.I am not sure what they want or what I did wrong."
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Abitibi Ltd Is Trying to Obtain a Loan from the Bank