percentage of net sales method

percentage of net sales method definition - finance
A method of estimating uncollectible accounts that assumes a predictable percentage of each sales dollar will not be collected. All businesses that bill customers for goods or services, instead of requiring payment upfront, likely make some allowance for uncollectible accounts.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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