The credit sales method will provide a more realistic estimate of the realizable value of a company's accounts receivable than would the aging method.

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The aging method provides a more accurate estimate of the realizable value of a company's accounts receivable as it takes into consideration the time period for which the receivables have been outstanding and applies different rates of collection to different age categories of receivables. The credit sales method, on the other hand, only considers the total credit sales made during a period and does not take into account the collection history of specific receivables.

The Credit Sales Method Will Provide a More Realistic Estimate