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Often an assumption is made that no problem exists with current debtors accounts while current debtors accounts while no collection history is analysed to prove that. Provision for bad and doubtful debts should also cover debtors that are not overdue as most probably at least part of them will become uncollectible in the future.
Please remember that only an adequate analysis can help to calculate doubtful debts provision on such kind of potentially bad debtors. Do you know how to do it? We do and can help you! Please see 24iValuemodule on bad debt provisions.
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