Improved Technologies Has Estimated Bad Debts Using the Percentage-Of-Sales Method

question 66

Essay

Improved Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2011.Information relating to bad debts and sales is as follows:
At the beginning of 2014,Improved proposes changing their estimation of bad debt expense from 3 percent of sales to 2.5 percent.Sales for the year totaled $186,000 and actual bad debts amounted to $3,910.

Recognize the effects of economic conditions on insurance policy loans.

Define indemnification and its implications in insurance contexts.

Learn the eligibility criteria for Medicare and other health insurance programs.

Understand the provisions and limitations of life insurance, including double indemnity and guaranteed insurability.

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, measured as two numbers indicating pressure during heartbeats (systolic) and in between (diastolic).

Elevated Reading

A measurement or value that is higher than normal or expected, often indicating a potential issue or condition.

Diabetic Ketoacidosis

A serious complication of diabetes that occurs when your body produces high levels of blood acids called ketones, often due to insufficient insulin.

Antihypertensive Medication

Drugs prescribed to lower high blood pressure and manage hypertension.