Which of the following are two methods of estimating uncollecible receivables? A
ID: 2577889 • Letter: W
Question
Which of the following are two methods of estimating uncollecible receivables?
A.
allowance method and amortization method
B.
aging-of-accounts-receivable method and percent-of-sales method
C.
gross-up method and direct write-off method
D.
direct write-off method and percent-of-completion method
A.
allowance method and amortization method
B.
aging-of-accounts-receivable method and percent-of-sales method
C.
gross-up method and direct write-off method
D.
direct write-off method and percent-of-completion method
Explanation / Answer
b) aging -of- accounts receivable methord and percent-of-sales method
*)percentage of sales method known as income statement approach. and a percentage of credit sale will treat as bad debt.
aging methord known as balancesheet approach. in this approach we charge bigger percentage as bad debt for each and every old receivable's balances. because more old receivables also have more uncertainity.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.