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

Question

Quizplus · Accepted Answer

This statement is true. The allowance for doubtful accounts is set up to account for potential bad debts, and as such should be a consistent percentage of the company's gross accounts receivable to maintain accurate financial records.

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