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October 25, 2022

Explain how ADP discloses the magnitude of its allowance for uncollectible accounts

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Internet Exercise

Visit the website of ADP, Inc. at www.adp.com. Access the most recent annual report and examine the balance sheet and the notes to the financial statements. What kind of transactions give rise to most of ADPs receivables? Explain how ADP discloses the magnitude of its allowance for uncollectible accounts. Why do you suppose that the allowance for uncollectible accounts does not appear in the balance sheet itself?

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