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Does the number you get from the aging schedule represent the bad debt expense estimate?

1 Answer

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Final answer:

No, the number you get from the aging schedule does not represent the bad debt expense estimate. The aging schedule categorizes accounts receivable based on when they are due, while the bad debt expense estimate represents the amount of money the bank expects to lose due to customers not repaying their loans.

Step-by-step explanation:

No, the number you get from the aging schedule does not represent the bad debt expense estimate. The aging schedule is a report that categorizes accounts receivable into different time periods based on when they are due. It helps the bank identify and track overdue payments. On the other hand, the bad debt expense estimate represents the amount of money the bank expects to lose due to customers not repaying their loans. This estimate is typically based on historical data and financial analysis.

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User Nicholas Carey
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