Accounting question?
Answers:
macro view...sales would definitely be larger than receivables as not all sales are made on credit, right? if so, then the disadvantage from the point of view of the business owner is that his deduction is much larger, thus understating his income and this also becomes an advantage in such that, having a lower income means a lower net income, ergo lower taxes. now, going back to your question, who's advantage and who's disadvantage.
in doing bad debt estimates, you should look at the aging of accounts receivables so you are able to better gauge the accuracy of the amount to be claimed as an allowance for bad debts. constant referrals to the aging of accounts will enable you to eliminate the bad accounts altogether and minimize risks for bad debts.
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