Companies are prohibited from combining the percent-of sales and the aging methods when estimating uncollectible accounts.

Question

Quizplus · Accepted Answer

There is no explicit prohibition against using a combination of these methods, and in fact, some companies may use both methods as part of their overall estimation process. However, it is important to use consistent and appropriate assumptions when using multiple methods to estimate uncollectible accounts.

Companies Are Prohibited from Combining the Percent-Of Sales and the Aging