Write a Short Paragraph Explaining the Following

question 111

Essay

Write a short paragraph explaining the following:
1. When bad debts are estimated, why is the balance in Allowance for Doubtful Accounts considered when the percentage of accounts receivable approach is used but not when the percentage of net credit sales approach is used?
2. When estimating bad debts on the basis of a percentage of accounts receivable, what is the advantage of using an aging schedule?

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Definitions:

Sexual Orientation

A persistent form of attraction, whether emotional, romantic, or sexual, towards men, women, or both genders.

Erotic Stimuli

Refers to sexual images, sounds, or other sensory inputs that trigger sexual arousal.

James-Lange Theory

A theory of emotion proposing that emotions occur as a result of physiological reactions to events.

Physiological Responses

The body's automatic reactions to internal or external stimuli, such as heart rate, breathing, or hormonal changes.