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Other things being equal, would the following practices increase or decrease score reliability?
a.The teacher decided to give a short quiz instead of the usual chapter test.
b.The teacher added five easy test items that everyone could answer correctly.
c.The teacher included 20 spelling words instead of 10 words on the spelling test.
Percentage of Credit Sales Method
An accounting method used to estimate bad debt expense by applying a fixed percentage to the total credit sales of a period.
Credit Sales
Sales made by a business on credit, where payment is collected at a later date.
Bad Debt Expense
The estimated amount of receivables that a company does not expect to collect.
Uncollectible Account Receivable
A receivable that is considered unlikely to be collected, representing a loss to the company.
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