The balance in Allowance for Uncollectible Accounts must be considered prior to end-of-period adjustment when using which of the following methods?
A)Direct charge-off method
B)Both direct charge-off method and percentage of net sales method
C)Percentage of net sales method
D)Accounts receivable aging method

Question

Quizplus · Accepted Answer

The accounts receivable aging method requires considering the existing balance in the Allowance for Uncollectible Accounts to adjust it to the desired ending balance based on the aging schedule.

The Balance in Allowance for Uncollectible Accounts Must Be Considered