The percentage-of-receivables approach is also referred to as the income statement approach.

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The percentage-of-receivables approach is also known as the balance sheet approach because it focuses on estimating the allowance for doubtful accounts to report accounts receivable at its net realizable value on the balance sheet. The income statement approach is typically associated with the percentage-of-sales method.

The Percentage-Of-Receivables Approach Is Also Referred to as the Income