Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
$\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$
-Refer to Aardvark Resale.Since the company has a choice of acceptable methods to estimate bad debts,what factors should be considered in the selection?

Question

Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
 $\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$ 
-Refer to Aardvark Resale.Since the company has a choice of acceptable methods to estimate bad debts,what factors should be considered in the selection?

Quizplus · Accepted Answer

The Answer of Aardvark Resale
This company sells merchandise only on credit.For the year ended December 31,2012,the following data are available:
 $\begin{array}{ll}
\text { Sales } & \$ 1,200,000 \
\text { Sales returns and allowances } & 50,000 \
\text { Account Receivable-J anuary 1, 2012 } & 225,000 \
\text { Allowance for doubtful accounts-Januayy } 1,2012 & 15,000 \
\text { Collections during 2012 } & 1,050,000 \
\text { Accountswritten off as uncollected during } 2012 & 10,000
\end{array}$ 
-Refer to Aardvark Resale.Since the company has a choice of acceptable methods to estimate bad debts,what factors should be considered in the selection?

Aardvark Resale This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale

Aardvark Resale
This Company Sells Merchandise Only on Credit -Refer to Aardvark Resale