Which of the Following Is NOT Acceptable in Estimating Uncollectible

question 69

Multiple Choice

Which of the following is NOT acceptable in estimating uncollectible accounts receivable under GAAP?

• A) The estimate of uncollectible accounts is based on a percentage of sales for the period.
• B) The estimate of uncollectible accounts is based on a percentage of the accounts receivable balance at the end of a period.
• C) The estimate of uncollectible accounts is based on an aging schedule.
• D) No estimate of uncollectible accounts is made;accounts are written off when it is determined they cannot be collected.

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Definitions:

Pineal Gland

A small endocrine gland in the brain that produces the hormone melatonin, which helps regulate sleep patterns.

Vasopressin

A hormone produced by the hypothalamus and stored in the pituitary gland, playing a key role in regulating water balance and blood pressure.

GnRH

Gonadotropin-releasing hormone, a hormone responsible for the release of follicle-stimulating hormone (FSH) and luteinizing hormone (LH) from the anterior pituitary gland.

TSH

Thyroid-Stimulating Hormone, a pituitary gland secreted hormone that regulates the production of hormones by the thyroid gland.