The two acceptable approaches to estimating bad debt expense are ________.
A)the net method and the gross method
B)the aging method and the percent-of-sales method
C)the gross method and the aging method
D)the percent-of-sales method and the allowance method

Question

Quizplus · Accepted Answer

The aging method and the percent-of-sales method are two acceptable approaches to estimating bad debt expense. The aging method estimates bad debt expense based on the age of accounts receivable, while the percent-of-sales method estimates bad debt expense as a percentage of sales.

The Two Acceptable Approaches to Estimating Bad Debt Expense Are