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Under the Percentage-Of-Sales Method, the Estimate of Bad Debts for the Period

Question 48

Multiple Choice

Under the percentage-of-sales method, the estimate of bad debts for the period:


A) is based on the balance in the Accounts Receivable account
B) is based on aging accounts receivable
C) is based on a percentage of net credit sales
D) is based on a percentage of net accounts receivable

Correct Answer:

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