The method being used to determine the amount of the allowance for doubtful debts that relies on a schedule in which customers' balances are classified by the length of time they have been unpaid, is known as the:
A) direct write-off method.
B) net realisable method.
C) aged accounts receivable method.
D) conservatism method.

Question

Quizplus · Accepted Answer

Ageing the accounts receivable allows the allowance for doubtful debts to be determined.

The Method Being Used to Determine the Amount of the Allowance