What Factors Are Considered When Determining Either the Percentage of Sales

question 50

Essay

What factors are considered when determining either the percentage of sales or the percentage of aged receivables used in determining the adjustment for bad debt expense?

---

Definitions:

Conditional Probabilities

The probability of a specific event happening after another event has already taken place.

IUPAC

The International Union of Pure and Applied Chemistry, an organization that sets standards for naming chemical compounds.

Compound

A mixture resulting from the chemical combination of two or more elements in exact proportions.

Anisole

A colorless liquid organic compound, essentially methoxybenzene, used in perfume and flavoring.