Comparing bad debt expense as a percentage of gross sales with previous years will detect what kind of possible misstatement?
A) cutoff errors in recording cash receipts
B) overstatement of sales and accounts receivable
C) understatement of sales and accounts receivable
D) understatement of allowance for uncollectible accounts

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The Answer of Comparing bad debt expense as a percentage of gross sales with previous years will detect what kind of possible misstatement?
A) cutoff errors in recording cash receipts
B) overstatement of sales and accounts receivable
C) understatement of sales and accounts receivable
D) understatement of allowance for uncollectible accounts

Comparing Bad Debt Expense as a Percentage of Gross Sales