A company is using the percentage-of- credit- sales method to estimate their bad debts and has noticed that over the past few years there has been a build-up of a debit balance in the Allowance for uncollectible accounts.Which of the following is a possible cause?
A) Management might be trying to "manage the numbers".
B) Management have been consistently overestimating the bad debt expense.
C) The company has not written off enough accounts.
D) The company has been selling more items on credit.
Correct Answer:
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