Which Method of Estimating Bad Debt Expense Focuses on Balance

question 92

Multiple Choice

Which method of estimating bad debt expense focuses on balance sheet relationships?

• A)net method
• B)allowance method
• C)aging method
• D)percentage-of-sales method

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Definitions:

Food Bank

A nonprofit organization that distributes food to those who have difficulty purchasing enough to avoid hunger.

Wage Gap

The disparity in income between different groups of people, often based on gender, race, or occupation.

Unpaid Work

Labor without financial compensation, including household chores, caregiving, and volunteer efforts, often unrecognized in economic analyses.

Poverty

A state where an individual lacks a certain amount of material possessions or money, leading to difficulties in meeting basic life needs.