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Managing Bad Debts in Accrual Accounting
December 11, 2023
How does accrual accounting handle bad debts?
Accrual accounting deals with bad debts by using the allowance method, estimating uncollectible amounts and recording them as an expense. This approach ensures that the financial statements reflect a more accurate portrayal of accounts receivable.
Tags : Accrual Accounting , Bad Debts , Financial Reporting