Which of the Following Is Not Acceptable in Estimating Uncollectible

question 80

Multiple Choice

Which of the following is not acceptable in estimating uncollectible accounts receivable under GAAP?

• A) The estimate of uncollectible accounts is based on a percentage of sales for the period.
• B) The estimate of uncollectible accounts is based on a percentage of the accounts receivable balance at the end of a period.
• C) The estimate of uncollectible accounts is based on an aging schedule.
• D) No estimate of uncollectible accounts is made; accounts are written off when it is determined they cannot be collected.

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Definitions:

Conversion Disorder

A mental condition where psychological stress is expressed as physical symptoms, without any underlying physical cause.

Neurobiological Conditions

Disorders of the nervous system attributable to biological factors, affecting the brain's structure, chemistry, or function.

Motor Function

The ability of an individual to move and control movements of the body, primarily referring to physical coordination and mobility.

Sensory Function

The ability of the body to receive and process stimuli from the environment through the senses, such as sight, hearing, taste, touch, and smell.