Calculating the allowance for doubtful accounts

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Why would you use the percentage of sales method for calculating doubtful accounts as opposed to the percentage of receivables method? Is it appropriate to use a hybrid of the percentage of sales and the percentage of receivables methods of calculating the allowance for doubtful accounts? Explain why or why not. Does GAAP allow for the use of both methods at the same time? Explain why or why not.

Reference no: EM13147151

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