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Mark is walking down a busy street and sees a man lying unconscious in the gutter. The man is wearing a dishevelled suit and surrounded by empty beer bottles. The other people walking past don't seem notice the man, and the ones that do just laugh at him and move on. Mark is concerned that the man might actually be in trouble-perhaps he has had a heart attack or some other kind of accident? But Mark also wonders if perhaps the man is fine, perhaps he just had a big night on the town? Mark wants to help but Mark also doesn't want to overact in the situation or act inappropriately. The phenomenon that Mark is experiencing is:
Journal Entries
Recorded transactions in the accounting system, documenting financial changes in accounts.
Percent of Sales
Percent of sales is a financial analysis tool that helps in estimating how certain accounts, like revenue and expenses, will vary in proportion to changes in sales.
Bad Debts
Debts that are not recoverable and are written off as a loss by the business because they cannot be collected.
Journal Entries
Journal entries are the recordings of financial transactions in the books of accounts, serving as the primary input in the accounting system.
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