Under the Percentage-Of-Sales Method, the Estimate of Bad Debts for the Period

question 13

Multiple Choice

Under the percentage-of-sales method, the estimate of bad debts for the period:

• A) is based on the balance in the Accounts Receivable account
• B) is based on aging accounts receivable
• C) is based on a percentage of net credit sales
• D) is based on a percentage of net accounts receivable

---

Definitions:

Common Causes

These refer to the usual, expected reasons behind variation in process performance or quality control.

Quality Function Deployment

A systematic approach to design based on a company's effort to meet customer needs and product quality by translating customer desires into engineering characteristics for a product.

Customer Requirements

Explicit and implicit needs or expectations that customers have concerning a product, service, or experience.

Specifications

Detailed descriptions of the design, materials, and performance requirements for products or services.