The percentage-of-receivables method for accounting for uncollectible accounts focuses on the:

Question

Quizplus · Accepted Answer

The percentage-of-receivables method focuses on the net realizable value of accounts receivable, which is the amount of receivables that are expected to be collected. This method calculates the estimated uncollectible amount by multiplying the accounts receivable balance by a percentage based on past experience or industry averages. This percentage is then used to determine the required adjustment to the allowance for doubtful accounts.

The Percentage-Of-Receivables Method for Accounting for Uncollectible Accounts Focuses on The