During the meeting with the accountants from

by | Mar 18, 2020 | Uncategorized

  

During the meeting with the accountants from Paperclips office supplies, Larry, an accountant
from the newly acquired Office Space, made suggestions about how to reduce the amount of
uncollectibles. To present his case, Larry showed Ned a general journal that calculated the
percentage of credit sales that were typically uncollectible.
Based on company history as shown here, __________% of credit sales are typically
uncollectible. HINT
Think about how a company calculates allowance based on percentage of net credit sales. How
can you use this formula to find the percentage of net credit sales, given the company’s past net
credit sales and allowances for bad debt?

  

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