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Chapter 10

The estimate of the allowance for receivables can be prepared using information
from a range of sources, such as:

Using current economic and financial data to evaluate the impact upon
the ability of individual customers to pay amounts outstanding

Preparing and reviewing an aged receivables analysis and assessing
the ability of individual customers to pay amounts due, including
awareness of any disputes or other communication with customers.

Tutor notes guidance – discussion points

Take students through illustration 1 from Chapter 11 of the Study Text.

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