what method does the balance in allowance for doubtful accounts have no bearing on the journal adjusting journal entry?
A) Percentage of sales
B) Aging of receivables
C) Percentage of Accounts receivable
D) All have to use the balance

Question

Quizplus · Accepted Answer

The Percentage of Sales method focuses on the income statement and estimates bad debts based on a percentage of sales. It does not consider the existing balance in the allowance for doubtful accounts when calculating the adjusting journal entry.

What Method Does the Balance in Allowance for Doubtful Accounts