To estimate the amount of its uncollectible accounts receivable, a company might
A) consult industry publications.
B) look at its past history of uncollectible accounts.
C) take into account the current condition of the economy.
D) all of these.

Question

Quizplus · Accepted Answer

To estimate the amount of its uncollectible accounts receivable, a company should consider all of these factors - consult industry publications for industry-specific data on collectibility of accounts, look at its past history of uncollectible accounts to identify trends, and take into account the current condition of the economy which might affect the ability of customers to pay. By considering all of these factors, the company can arrive at a more accurate estimate of its uncollectible accounts receivable.

To Estimate the Amount of Its Uncollectible Accounts Receivable, a Company