The percent-of-sales method for estimating uncollectibles is also known as the income statement approach.

Name: The percent-of-sales method for estimating uncollectibles is also known as the income statement approach.
Brand: Quizplus
Rating: 4.7 (26 reviews)

Question

Quizplus · Accepted Answer

The percent-of-sales method focuses on estimating uncollectible accounts based on a percentage of sales, which directly affects the income statement through the bad debt expense, hence it's known as the income statement approach.

The Percent-Of-Sales Method for Estimating Uncollectibles Is Also Known as the Income