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Topics: Bad Debt

What is Bad Debt Recovery?

What is Bad Debt Recovery?

Subject: Accounting
A bad debt recovery is a payment received after it has been designated as un-collectible. This may occur after legal action has been taken to recover a receivable, as a partial payment from a bankruptcy…
How to Calculate Bad Debt Under the Allowance Method?

How to Calculate Bad Debt Under the Allowance Method?

Subject: Accounting
Percentage of Sales Method Example: The company estimates bad debt based on the percentage of sales method. Sales for the fiscal year ended December 31, 2013 were $3,400,000, while credit sales were $2,900,000. The company…

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