In the percentage-of-sales basis, management estimates what percentage of credit sales will be uncollectible. This percentage is based on past experience and anticipated credit policy.
The company applies this percentage to either total credit sales or net credit sales of the current year.
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Modified rebuy refers to a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
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Specific identification method refers to an actual physical flow costing method in which items still in inventory are specifically coasted to arrive at the total cost of the ending inventory.
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Other receivables include various forms of nontrade receivables which do not generally result from the operations of the business.
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Cash receipts journal refers to a special journal that records all cash received. The most common types of cash receipts are cash sales of merchandise and collections...
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Free cash flow means cash provided by operating activities adjusted for capital expenditures and dividends paid.
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