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$5.00 EXCELLENT!!!!!! ACC 281 WEEK 2 DQ 2

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Why would you use the percentage of sales method for calculating doubtful accounts as opposed to the percentage of receivables method? Is it appropriate to use a hybrid of the percentage of sales and the percentage of receivables methods of calculating the allowance for doubtful accounts? Explain why or why not. Does GAAP allow for the use of both methods at the same time? Explain why or why not.

 

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EXCELLENT!!!!!! ACC 281 WEEK 2 DQ 2
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Preview: ... bad debts as opposed to the cash realizable value of the accounts receivable.  Using a hybrid of these two methods is appropriate to calculate the allowance for doubtful accounts. Having an estimate of the cash loss and expens ...
The full tutorial is about 187 words long .