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Chapter 13

This estimate can be prepared using a number of different techniques such
as:

Using past experience and knowledge of customers and current
economic climate.

Listing all receivables and scrutinising them individually for their
ability to pay.

Calculating an overall percentage of the outstanding receivables
balance.

Preparing a schedule of receivables according to the length of time
the debt has been outstanding, and using different percentages
depending on the age of the debt.

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