Which of the Following Methods Is Not an Appropriate Method

question 49

Multiple Choice

Which of the following methods is not an appropriate method for estimating bad debt expense for companies whose uncollectible accounts are material?

• A) percentage of net credit sales
• B) percentage of outstanding accounts receivable
• C) aging of accounts receivable
• D) direct write-off method

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Definitions:

Large Crowds

refers to gatherings of a considerable number of individuals in a specific location, which can influence behavior, mentality, and social dynamics.

Milgram

Refers to Stanley Milgram, a psychologist known for his experiments on obedience, demonstrating how people are willing to follow authorities even to the extent of harming others.

Confederates

Individuals who are part of a larger group or cause, often used in the context of the American Civil War or in experimental research to describe participants who are in on the experiment's aims.

Crosswalk

Marked points on a road where pedestrians have the right to safely cross, typically found at intersections.