A Method of Estimating Bad Debts Expense That Involves a Detailed

question 138

Multiple Choice

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:

• A)Direct write-off method.
• B)Aging of accounts receivable method.
• C)Percent of sales method.
• D)Aging of investments method.
• E)Percent of accounts receivable method.

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Definitions:

Desired Outcome

The specific result or objective that an individual or organization aims to achieve through a set of actions or strategies.

Participate

To take part or become involved in an activity or event.

Attained Standards

Benchmarks or levels of performance that have been successfully achieved or realized.

Variances

The difference between expected and actual performance, used in accounting and finance to track deviations from budgets.