The Method of Accounting for Uncollectible Accounts That Results in a Better

question 77

Multiple Choice

The method of accounting for uncollectible accounts that results in a better matching of expenses with revenues is the

• A) aging accounts receivable method.
• B) direct write-off method.
• C) percentage of receivables method.
• D) percentage of sales method.

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Definitions:

Cost Of Goods Sold

represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Merchandise Purchases

The acquisition of goods that a company intends to resell to customers.

Fixed Product Cost

Costs that do not vary with the level of production or sales, such as salaries of permanent employees and rent.

Factory Supervisor

An individual who oversees the work of employees in a manufacturing facility, ensuring that production goals and standards are met.