You are a bank manager. The owner of a small business has come to see you about a loan. He presents.
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You are a bank manager. The owner of a small business has come to see you about a loan. He presents you with the financial statements of his business. The accounts receivable are reported at the amount customers have promised to pay. The owner says he writes off bad debts once he decides the amount won t be collected. Do you have any concerns about how the receivables are reported on the balance sheet? Explain. What information about the receivables would you want?
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