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What is the conceptual difference between the (1) percentage of creditsales and (2) aging methods of...

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Accounting

What is the conceptual difference between the (1) percentage ofcreditsales and (2) aging methods of estimating bad debts? Whatkind of account isallowance for doubtful accounts? What does itrepresent?

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Answer 1 The conceptual differences between Percentage of credit sale method and aging method are Bad Debt expense is calculated on the amount of total credit sales for the period under percentage of credit sale method While under Aging method Bad Debt expense is calculated by adjusting the balance of Allowance for Uncollectible account to the estimated    See Answer
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What is the conceptual difference between the (1) percentage ofcreditsales and (2) aging methods of estimating bad debts? Whatkind of account isallowance for doubtful accounts? What does itrepresent?

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