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TRUE/FALSE. the allowance method for estimating bad debts requires an adjusting entry at the end of the period to reduce receivables to their appropriate carrying value.

Respuesta :

It is necessary to make an adjusting entry at the end of the period to lower receivables to their proper carrying value in order to use the allowance technique for estimating bad debts, which is True. When a debt becomes uncollectible and appears on a creditor's records, it is recorded as a charge-off.

Are allowance methods necessary?

Companies that adhere to widely recognized accounting rules must use the allowance technique.

Which two approaches are used to calculate the allowance for dubious accounts?

The percentage of sales methodology and the accounts receivable aging method are the two most widely used techniques for calculating uncollectible receivables.

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