The uncollectible accounts expense to net credit sales ratio is useful in evaluating the reasonableness of __________.
A)uncollectible accounts expense
B)total revenues
C)gross margins
D)prior period's uncollectible accounts expense

Question

Quizplus · Accepted Answer

The uncollectible accounts expense to net credit sales ratio indicates the percentage of sales that are expected to be uncollectible. Therefore, it is useful in evaluating the reasonableness of the uncollectible accounts expense, as it provides an idea of how much bad debt can be expected.

The Uncollectible Accounts Expense to Net Credit Sales Ratio Is