The recognition of bad debts is an estimate, which may need to be adjusted over time. The total amount of original accounts receivable can be kept by using the allowance account, which is convenient for subsequent adjustment.
The estimation of bad debts is based on the concept of receivables. In fact, it is impossible to determine which customers' accounts need to be reduced. Therefore, in the way of allowance, the dilemma that customers' accounts receivable Sub Ledger cannot be reduced synchronously can be solved.
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| Computer M12 connector |
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