When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated.

Name: When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The percentage of sales method focuses on the income statement and matches the estimated expense of uncollectible receivables to the same period in which the related sales are recorded, thus adhering to the matching principle.

When Accounting for Uncollectible Receivables and Using the Percentage of Sales