The aging method of determining bad debts expense is based on the knowledge that the longer a receivable is past due, the higher the likelihood of collection.

Name: The aging method of determining bad debts expense is based on the knowledge that the longer a receivable is past due, the higher the likelihood of collection.
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The aging method is based on the knowledge that the longer a receivable is past due, the lower the likelihood of collection, not higher.

The Aging Method of Determining Bad Debts Expense Is Based