From an income statement perspective,the percentage-of-credit-sales method is typically preferable because it better matches the revenues (credit sales)with their related expenses (bad debts).

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The percentage-of-credit-sales method is designed to estimate the amount of bad debts based on the credit sales during the period. Since bad debts arise from credit sales, matching the expenses (bad debts) with the revenues (credit sales) using this method is more accurate than using other methods like the percentage-of-receivables method or the aging method. Therefore, from an income statement perspective, the percentage-of-credit-sales method is typically preferable.

From an Income Statement Perspective,the Percentage-Of-Credit-Sales Method Is Typically Preferable