Thesis Writing Services: give reasons why the balance in Allowance for Doubtful Accounts has become very large in relationship to the balance in Accounts Receivable

Thesis Writing Services: give reasons why the balance in Allowance for Doubtful Accounts has become very large in relationship to the balance in Accounts Receivable

A firm has consistently adjusted its allowance account at the end of the fiscal year by adding a fixed percent of the period’s sales on account. After seven years, the balance in Allowance for Doubtful Accounts has become very large in relationship to the balance in Accounts Receivable. Give two possible explanations.

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