All of the following are features of the percentage of credit sales method EXCEPT
A) emphasizes earnings statement relationships.
B) focuses on asset valuation.
C) determines bad debts expense directly.
D) focuses on income measurement.

Question

Quizplus · Accepted Answer

The percentage of credit sales method does not focus on asset valuation. Instead, it emphasizes income measurement and determines bad debt expense directly, which is reflected in the earnings statement.

All of the Following Are Features of the Percentage of Credit