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Theories permit researchers to move from
Percentage of Sales
A financial ratio illustrating how a particular figure on the financial statements reflects a certain percentage of the total sales.
Percentage of Receivables
A method used to estimate the amount of bad debt expense by calculating a fixed percentage of accounts receivable to be uncollectible.
Uncollectible Accounts
Accounts receivable that a company has determined are unlikely to be collected and written off as an expense.
Allowance for Doubtful Accounts
An accounting concept used to estimate the portion of accounts receivable that may not be collected.
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