A method that estimates the amount of Bad Debts Expense based on a percentage of net credit sales for the period is called:
A) direct write off method.
B) income statement approach.
C) balance sheet approach.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

The income statement approach estimates Bad Debts Expense as a percentage of net credit sales, focusing on the income statement to predict the expense.

A Method That Estimates the Amount of Bad Debts Expense