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.

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The two methods can result in different amounts of bad debt expense being reported in the income statement. The percentage-of-receivables method estimates bad debt based on the balance of accounts receivable, while the percentage-of-credit-sales method estimates bad debt based on credit sales. As a result, if the balance of accounts receivable changes between periods, the bad debt expense reported under the percentage-of-receivables method may be different than the amount reported under the percentage-of-credit-sales method.

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