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Michelle Carroll is a coworker of yours and she overheard a conversation at work about changes that her boss wants to make in accounting for uncollectible accounts receivable. She does not know a lot about accounting and wants to understand about what she overheard.
In an email, she asks you to explain the following:
- The three different methods that can be used to account for uncollectible accounts receivable, specifically:
- percentage of receivables
- percentage of sales
- the direct write-off methods
Reply to her email about these differences.