All of the following are features of the aging of accounts receivable method EXCEPT
A) focuses on asset valuation.
B) analysis of allowance for doubtful accounts required in order to determine bad debts expense.
C) emphasizes statement of financial position relationship.
D) determines bad debt expense directly.

Question

Quizplus · Accepted Answer

The aging of accounts receivable method does not directly determine bad debt expense. Instead, it provides information that is used in conjunction with the company's historical experience and other factors to estimate the bad debt expense for the period.

All of the Following Are Features of the Aging of Accounts