If collectibility is reasonably certain or there is a reliable basis for estimating collectibility then the cost recovery method is appropriate.

Name: If collectibility is reasonably certain or there is a reliable basis for estimating collectibility then the cost recovery method is appropriate.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

The cost recovery method is used when collectibility is not reasonably certain, as it defers profit recognition until cash collected exceeds the cost of the goods sold.

If Collectibility Is Reasonably Certain or There Is a Reliable