The Percent-Of-Sales Method of Computing Uncollectible Accounts for Accounts Receivable

question 193

Multiple Choice

The percent-of-sales method of computing uncollectible accounts for Accounts Receivable is used by most companies for:

• A)interim statements because it ensures that Accounts Receivable are reported at net realizable value.
• B)annual statements because it is more accurate than the aging method.
• C)interim statements because it is easier than the aging method.
• D)annual statements because it focuses on the amount of receivables that is uncollectible.

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