Which one of the approaches for the allowance procedure emphasizes matching bad debts expense with revenue on the income statement?

Question

Quizplus · Accepted Answer

The percentage-of-sales approach matches bad debts expense with revenue on the income statement by estimating the percentage of sales that will result in uncollectible accounts based on historical trends. This approach focuses on the matching principle, which states that expenses should be recorded in the same period as the revenue they helped generate. The other options do not emphasize this matching principle as strongly.

Which One of the Approaches for the Allowance Procedure Emphasizes