Which of the following are the two methods of estimating uncollectable receivables?
A)The direct write- off method and the percentage- of- completion method
B)The ageing- of- accounts- receivable method and the percentage- of- sales method
C)The gross- up method and the direct write- off method
D)The allowance method and the amortisation method

Question

Quizplus · Accepted Answer

The ageing-of-accounts-receivable method and the percentage-of-sales method are both used to estimate uncollectable receivables. The ageing method analyzes receivables based on the age of each account, while the percentage-of-sales method estimates bad debts as a percentage of total sales.

Which of the Following Are the Two Methods of Estimating