To estimate the amount of its uncollectible accounts receivable,a company might
A) consult industry publications.
B) look at its past history of uncollectible accounts.
C) take into account the current condition of the economy.
D) all of the above.

Question

Quizplus · Accepted Answer

To estimate the amount of uncollectible accounts receivable, a company should consider all factors that may affect the collectability of accounts. This includes consulting industry publications for trends, looking at past history of uncollectible accounts to see patterns, and taking into account the current condition of the economy which can impact customers' ability to pay. Only by taking all of these factors into account can a company make a reasonable estimate of its uncollectible accounts.

To Estimate the Amount of Its Uncollectible Accounts Receivable,a Company