Prior to Scanning the Paper Record, the Record Is Prepped

question 7

Essay

Prior to scanning the paper record, the record is prepped. List the steps that occur in the preparation.

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Definitions:

Percentage of Sales

A financial ratio that helps determine the relative profitability of a product by comparing the percentage of total sales that the product represents.

Aging Analysis

A method used to estimate the collectability of accounts receivable by categorizing them according to their age, usually in 30-day increments.

Historical Relationship

Refers to the analysis of past interactions or correlations between variables to predict future trends or behaviors.

Bad Debt Expense

This refers to the amount of receivables a company does not expect to collect and hence records as an expense on its income statement.