The method for estimating bad debts that results in the accounts receivable being properly reported at its estimated net realizable value is the

Question

Quizplus · Accepted Answer

The aging of accounts receivable method is the best choice as it takes into account the age of each account receivable and uses a percentage to estimate the likelihood of collection, resulting in a more accurate estimate of the net realizable value of the accounts receivable. The other methods listed are not as precise and do not account for the timing of when the accounts receivable were generated.

The Method for Estimating Bad Debts That Results in the Accounts