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Question - Lokalalo has plenty of customers, who because of the nature and price of the work these customers are typically given a month to pay for the work. At 31 August 2020, Lokalalo has $1,500,000 in accounts receivable. Lokalalo anticipates that 10% of their customers will default and not pay at all.
You are a student studying BUS 114 and have been approached by Paulo Jr. the managing director to answer his following questions.
What value will the accounts receivable (debtors) be recorded for in the balance sheet on 31 August and why?
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