Which of the Following Methods of Determining Annual Bad Debt

question 132

Multiple Choice

Which of the following methods of determining annual bad debt expense best achieves the matching concept?

• A) Percentage of sales
• B) Percentage of ending accounts receivable
• C) Percentage of average accounts receivable
• D) Direct write-off

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Definitions:

Attracting Factors

Elements or characteristics that draw interest, attention, or a positive response from others.

Prostitute

A person who engages in sexual activity for payment.

Adultery

A voluntary sexual relationship between a married person and someone other than their lawful spouse.

Affairs

Secretive relationships involving emotional or sexual intimacy with someone other than a person's committed partner or spouse.