Acct212 Financial Accounting: Most businesses extend credit to other businesses (Allowance Method)
Acct212 Financial Accounting Most businesses extend credit to other businesses as a way of increasing sales the risk is that some of the accounts may not pay the amount due. In these cases, we have to account for uncollectible receivables. Explain how the allowance method works and provide an example of a journal entry that would adjust accounts for the loss.
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