In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?
A) direct write-off method
B) percentage of sales method
C) analysis of receivables method
D) both percentage of sales and analysis of receivables methods

Question

Quizplus · Accepted Answer

The analysis of receivables method (also known as the aging of accounts receivable method) requires adjusting the Allowance for Doubtful Accounts to reflect the estimated uncollectible accounts, directly impacting the adjustment amount.

In Accounting for Uncollectible Receivables, the Balance in Allowance for Doubtful