The amount of bad debt expense can be estimated by
A) The percent of sales approach
B) The percent of accounts receivable approach
C) The aging of accounts receivable approach
D) Both the percent of sales approach and the percent of accounts receivable approach
E) All of these

Question

Quizplus · Accepted Answer

The amount of bad debt expense can be estimated using various methods, including the percent of sales approach, the percent of accounts receivable approach, and the aging of accounts receivable approach. Each method provides a different way to estimate uncollectible accounts based on historical data, current economic conditions, and the status of receivables.

The Amount of Bad Debt Expense Can Be Estimated by