The Balance in Allowance for Uncollectible Accounts Must Be Considered

question 168

Multiple Choice

The balance in Allowance for Uncollectible Accounts must be considered prior to end-of-period adjustment when using which of the following methods?

• A) Both percentage of net sales method and accounts receivable aging method
• B) Both direct charge-off method and percentage of net sales method
• C) Percentage of net sales method
• D) Accounts receivable aging method

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Definitions:

Facilities Costs

Facilities costs are the expenses associated with the physical locations where business operations occur, including maintenance, utilities, and rent.

Direct Method

A cash flow statement preparation method that lists specific sources of operating cash inflows and uses of cash outflows, as opposed to the indirect method.

Information Technology

The use of computers, telecommunications, and other devices to store, retrieve, transmit, and manipulate data.

Computer Workstations

High-performance computers designed for technical or scientific applications, often used in professional environments for tasks requiring significant computing power.