That is because the bad debt expense was recognized when the company recorded the estimated uncollectable amount in the period of respective sales recognition. So, bad debt expenses are only recorded when the company posts the estimates of uncollectable balances due from customers, but not when bad debts are actually written off. This approach fully […]
Monthly Archives: Outubro 2023
Estimating collection shortfalls is an important part of managing cash flow. Identify which financial elements to track along with your sales numbers. This number may seem small, but it’s crucial when you remember that she’s hoping for an increase of sales next month of $1,978. With a BDE of $1,100, she might be looking at […]