Companies that feel aging is too time-consuming may estimate Bad Debts based on a percentage of total Accounts Receivable.

Name: Companies that feel aging is too time-consuming may estimate Bad Debts based on a percentage of total Accounts Receivable.
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Question

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Companies often use a percentage of total accounts receivable to estimate bad debts when they find the aging method too time-consuming or when they believe this approach provides a sufficient approximation of potential bad debts.

Companies That Feel Aging Is Too Time-Consuming May Estimate Bad