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Answer Posted / nagesh
It will be simpler to treat the that amount as bad debt
expense when the company is certain that the customers are
not able to pay the amount owed?
That way, you record the exact amount of bad debt when it
happens, and you do not have to estimate an amount of
doubtful accounts and risk being correct.
| Is This Answer Correct ? | 2 Yes | 3 No |
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