If a company's bad debt as a percentage of its sales is increasing, it can be a sign of trouble. Therefore, it can be useful to calculate and monitor the percentage of bad debt over time.

Avoid misleading results in Excel! Learn the pitfalls of the Percent Of function and how to replace it with precise calculation methods.

Excel's PERCENTOF function returns the percentage that a subset of data contributes to a whole dataset, saving you from having to create additional or complex formulas to generate the same outcome.