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24 October, 22:34

The method that uses a certain percentage of each year's net sales to estimate the uncollectible account is called the:

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  1. 24 October, 22:53
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    Percentage of net sales method

    Explanation:

    By using the percentage of net sales method, a business assumes that a certain percentage of the year's net sales will be uncollectible. This method relies on historical correlation between sales and uncollectible account from previous periods and can be highly reliable if a strong correlation can be observed.
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