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Which of the following regarding crystal field theory is NOT correct?
Percentage of Sales Method
A method used for financial forecasting that predicts future occurrences, such as expenses or inventory needs, based on a fixed percentage of sales.
Bad Debt Expense
The cost associated with accounts receivable that a company is unable to collect, considered as a loss.
Bad Debt Expense
An income statement item reflecting the cost associated with the estimated uncollectible accounts receivable.
Allowance for Doubtful Accounts
An estimate of the amount of accounts receivable that may not be collected, recognized as a contra asset account.
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