In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?
A) direct write-off method
B) percentage of sales method
C) Analysis of receivables method
D) both (b) and (c)

Question

Quizplus · Accepted Answer

The Analysis of Receivables method (also known as the aging method) involves estimating uncollectible accounts based on the age of each account receivable. The balance in the Allowance for Doubtful Accounts is adjusted to reflect the estimated uncollectible amount, directly impacting the adjustment.

In Accounting for Uncollectible Receivables, the Balance in Allowance for Doubtful