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Which of the Following Is NOT True Regarding the Allowance

Question 3

Multiple Choice

Which of the following is NOT true regarding the Allowance method?


A) The uncollectible accounts expense is estimated in advance of the write-off.
B) The estimate can be calculated as a percentage of sales or as a percentage of accounts receivable.
C) The method should be used if uncollectible accounts have a material effect on a company's financial statements.
D) This method is used for tax purposes.

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