Under the aging-of-accounts-receivable method:

Question

Quizplus · Accepted Answer

The aging-of-accounts-receivable method takes into consideration the balance in Allowance for Uncollectible Accounts prior to adjustment, as it is used to estimate the amount of uncollectible accounts. The balance in accounts receivable prior to adjustment is also considered in this method. The balance in Bad Debt Expense prior to adjustment, however, is not directly relevant to the calculation of the allowance.

Under the Aging-Of-Accounts-Receivable Method