1. When estimating bad debts on the basis of a percentage of accounts receivable, what is the advantage of using an aging schedule? 2. Why does the discounting of a note receivable with recourse...

1. When estimating bad debts on the basis of a percentage of accounts receivable, what is the advantage of using an aging schedule?

2. Why does the discounting of a note receivable with recourse result in a contingent liability? Should the liability be reported on the balance sheet? Explain.