The percent of sales method of estimating bad debts focuses more on the realizable value of accounts receivable than on matching.

Name: The percent of sales method of estimating bad debts focuses more on the realizable value of accounts receivable than on matching.
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Question

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The percent of sales method focuses on matching bad debt expense to the period in which the related sales occurred, rather than on the realizable value of accounts receivable.

The Percent of Sales Method of Estimating Bad Debts Focuses