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Completing the Tests in the Sales and Collection Cycle: Accounts Receivable - page 11 / 34

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©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens//Elder/Beasley

16 - 11

Analytical Procedures for the Sales and Collection Cycle

Individual customer balances over

a stated amount

Bad debt expense as a percentage

of gross sales

Days that accounts receivable

are outstanding

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