In Determining the Adequacy of the Allowance for Uncollectible Accounts

question 50

Multiple Choice

In determining the adequacy of the allowance for uncollectible accounts, the least reliance should be placed upon which of the following?

• A) The credit manager's opinion.
• B) An aging schedule of past due accounts.
• C) Collection experience of the client's collection agency.
• D) Ratios calculated showing the past relationship of accounts receivable to net credit sales.

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