Question about Account receivable adjustment

From analytical perspective, what adjustment do we need to do for EBIT? I found that the answer is to add uncollected amount of A.R. * Interest rate…but I don’t know why…so anyone could tell me the reason would be really appreciated :slight_smile:

Depends on what purpose the analysis will be used for? Can you kindly provide more information? If the AR are not undoubtful and were adjusted before then … Needs more information to contextualise.