If the estimate of bad debt expense is made on the basis of net credit sales every period, this will result in a valuation of accounts receivable that approximates its net realizable at every balance sheet date.

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This statement is true. Estimating the bad debt expense based on net credit sales ensures that the allowance for doubtful accounts reflects the expected level of uncollectible accounts receivable, resulting in a more accurate valuation of accounts receivable on the balance sheet.

If the Estimate of Bad Debt Expense Is Made on the Basis