Companies do not need to explain to financial statement users how uncollectable receivables are accounted for because they do not need this information.
BT: Knowledge

Question

Quizplus · Accepted Answer

Companies should disclose their accounting policies for uncollectable receivables in their financial statements to help users understand how the company estimates and records bad debts. This information is important for assessing the company's credit risk and financial health.

Companies Do Not Need to Explain to Financial Statement Users