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Assignment
400-600 words
• What are the 2 methods that companies implement to adjust the outstanding accounts receivable for the current accounting period? How often is this done?
• Please provide an example of each in detail.
• Explain how these methods can impact the financials as a whole, and specifically how they can be misread by an overstatement of accounts receivable dependent upon the users of the information.
• Please include in your explanation which method you feel would be best a small equipment rental company, and support your reasoning.
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Milner Family Importers sold goods to Tung Decorators for $30,000 on November 1, 2010, accepting Tung's $30,000, 6-month, 6% note.
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