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Toyota,based in Japan,would like to build a new factory and a new retail distribution center.Both or either of these may be built in the United States and in Canada.Currently,the U.S.dollar is weak compared to the Canadian dollar.Assuming the decision does not affect the number of cars sold,which of the following arrangements would be MOST profitable?
Gross Method
An accounting method for recording purchases at the full invoice price without deducting any cash discounts.
Recording
The act of documenting financial transactions in accounting records.
Estimated Bad Debts
A provision for accounts receivable that are expected not to be collected, thereby adjusting the value of gross receivables to a more realistic figure.
Uncollectible Account
An account receivable that a company deems unlikely to be collected and thus writes off as a bad debt expense.
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