Even though the percentage-of-receivables method and the percentage-of-credit-sales method use different accounts to estimate future uncollectible accounts,the amount of bad debt expense reported in the income statement will always be the same under the two methods.

Question

Quizplus · Accepted Answer

The methods use different accounts and formulas to calculate bad debt expense, so it is possible for the amounts to differ.

Even Though the Percentage-Of-Receivables Method and the Percentage-Of-Credit-Sales Method Use