The advantage of relating a company's bad debt experience to its accounts receivable is that this approach
A) Gives a reasonable correct statement of receivables in the balance sheet
B) Relates bad debts expense to the period of sale
C) Is the only generally accepted method for valuing accounts receivable
D) Makes estimates of uncollectible accounts unnecessary

Question

Quizplus · Accepted Answer

Relating bad debt experience to accounts receivable provides a more accurate valuation of receivables on the balance sheet by estimating the amount that is likely to be uncollectible.

The Advantage of Relating a Company's Bad Debt Experience to Its