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Let us consider a simple fact exactly where an X organization estimates to get on the uncollectible rate of one% of the whole sales development or declination. Assuming the entire product sales of the fiscal 12 months as $500,000 wherever an quantity of article $100,000 was acquired through the organization as the gathering of payment from the market along with an allowance for doubtful accounts displaying it to be a zero equilibrium. The situation can be represented for instance
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