In comparing Uncollectible Accounts Expense to Accounts Receivable Write-offs, smaller ratios may indicate an inadequate estimation process.

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Smaller ratios of Uncollectible Accounts Expense to Accounts Receivable Write-offs may indicate that the company is underestimating the amount of credit sales that will not be collected, suggesting an inadequate estimation process for accounting for bad debts.

In Comparing Uncollectible Accounts Expense to Accounts Receivable Write-Offs, Smaller