Which of the following are two methods of estimating uncollectible receivables?

Question

Quizplus · Accepted Answer

The allowance method and the direct write-off method are both methods of estimating uncollectible receivables, but neither of these options are listed together as choices. The aging-of-accounts-receivable method and the percent-of-sales method are both legitimate methods of estimating uncollectible receivables. The gross-up method and the direct write-off method are not methods of estimating uncollectible receivables. The percent-of-completion method is a method of recognizing revenue for long-term construction projects and is not related to the estimation of uncollectible receivables. Therefore, the best answer is B, as both the aging-of-accounts-receivable method and percent-of-sales method are effective ways of estimating uncollectible receivables.

Which of the Following Are Two Methods of Estimating Uncollectible