The income statement approach to estimating uncollectible accounts is called the ________ method.The balance sheet approach to estimating uncollectible accounts is called the ________ method.
A)direct write-off;allowance
B)allowance;direct write-off
C)percent-of-sales;aging-of-receivables
D)aging-of-receivables;percent-of-sales

Question

Quizplus · Accepted Answer

The income statement approach, which focuses on the income effects of uncollectible accounts, is known as the percent-of-sales method. The balance sheet approach, which emphasizes the reported amount of receivables, is called the aging-of-receivables method.

The Income Statement Approach to Estimating Uncollectible Accounts Is Called