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

question 19

Multiple Choice

The advantage of relating a company's bad debt expense to its outstanding accounts receivable is that this approach

• A)gives a reasonably correct statement of receivables in the balance sheet.
• B)best 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.

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