Aging of accounts receivable method will normally result in a better approximation of the net realizable value of the receivables than the percentage of credit sales method.

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The aging of accounts receivable method is based on analyzing the age of each individual receivable and estimating the likelihood of collection, which can provide a more accurate estimate of the net realizable value of the receivables. The percentage of credit sales method, on the other hand, simply applies a percentage to the total credit sales to estimate the uncollectible accounts, which may not take into account the specific characteristics of individual accounts.

Aging of Accounts Receivable Method Will Normally Result in a Better