Which method of estimating bad debt expense focuses on income statement relationships?
A)net method
B)allowance method
C)aging method
D)percentage-of-sales method

Question

Quizplus · Accepted Answer

The percentage-of-sales method focuses on the relationship between credit sales and the percentage of those sales that are expected to be uncollectible. This method estimates bad debt by applying a percentage to credit sales in the period.

Which Method of Estimating Bad Debt Expense Focuses on Income