The percent of sales method of estimating bad debts focuses more on the realizable value of accounts receivable than on expense recognition.

Name: The percent of sales method of estimating bad debts focuses more on the realizable value of accounts receivable than on expense recognition.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

The percent of sales method focuses on matching expenses with revenues by estimating bad debts as a percentage of sales, not on the realizable value of accounts receivable.

The Percent of Sales Method of Estimating Bad Debts Focuses