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in this video we're going to talk about the aging method for accounts receivable that's used when you want to estimate bad debt so the easiest way to come up with a bad debt expense is basically just the percentage of sales method you just look at the sales and you say okay three percent is uncollectible and then you've got your journal entry the aging method focuses on the different types of accounts receivable specifically you can set out an actual schedule called an aging schedule you set up and say okay got the age and let's say that the receivable has only been due for less than 60 days so you say under 60 days and then you've got receivables that have been due between 60 and 120 days and then you've got receivables that have been due over 120 days so those ones spend several several months nobody's paid you yet for these and so you might see immediately where you'd be less likely to collect these you think hey look it's been more than four months so you might have a higher rate...