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Chapter 2
Accounting for Receivables
AS-6 (
2
)
Explain the nature and purpose of the account called allowance for doubtful accounts.
AS-7 (
3
)
Name two different approaches for estimating bad debt expense.
AS-8 (
5
)
Name two ratios used to assess accounts receivable, and state the formulas used to calculate
the ratios.
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