Both U.S.GAAP and IFRS require the allowance method for uncollectible accounts, which involves estimating the amount of uncollectible accounts receivable associated with
A)the cumulative total of all accounting period's total sales.
B)the cumulative total of all accounting period's credit sales.
C)each accounting period's total sales.
D)each accounting period's credit sales.
E)the cumulative total of all accounting period's cash sales.

Question

Quizplus · Accepted Answer

Both U.S.GAAP and IFRS require the allowance method for uncollectible accounts, which involves estimating the amount of uncollectible accounts receivable associated with each accounting period's credit sales. This is because credit sales are the ones that are more likely to generate accounts receivable and therefore have a risk of being uncollectible.

Both USGAAP and IFRS Require the Allowance Method for Uncollectible Accounts