The valuation of the uncollectibility risk constitutes one of the tools managers use to manage their earnings.

Name: The valuation of the uncollectibility risk constitutes one of the tools managers use to manage their earnings.
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The valuation of the uncollectibility risk helps managers in estimating the expected losses due to non-payment by customers and helps them in managing their earnings by adjusting bad debt expense to achieve desired earnings levels.

The Valuation of the Uncollectibility Risk Constitutes One of the Tools