In normal circumstances,the allowance for doubtful accounts for a company should be a fairly consistent percentage of gross accounts receivable.

Question

Quizplus · Accepted Answer

The allowance for doubtful accounts is typically calculated as a percentage of gross accounts receivable and should be based on the company's historical experience with bad debts. This percentage may fluctuate slightly but should remain fairly consistent in normal circumstances.

In Normal Circumstances,the Allowance for Doubtful Accounts for a Company