The data presented below is for Craft, Inc. for 2015. 
What is the effect on liquidity when Craft records its estimate for bad debt expense using the allowance method?
Definitions:
Environmental Scanning
The process businesses use to understand the external factors influencing their operation, including technological, regulatory, and competitive elements.
Internal Factors
Elements or conditions within an organization or individual's control that can influence decisions, behaviors, and outcomes, such as policies, resources, and personal abilities.
Systematic Monitoring
A structured and continuous process of tracking and evaluating the performance, quality, or progress of a project, system, or organization.
Cultural Audits
Audits of the culture and quality of work life in an organization
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