The Percent-Of-Sales Method

question 117

Multiple Choice

The percent-of-sales method:

• A)is not an acceptable method of estimating bad debts.
• B)is a balance sheet approach, since it focuses on sales.
• C)is an income statement approach, since it focuses on the amount of expense to be reported on the income statement.
• D)is concerned with the balance in the Allowance for Doubtful Accounts.