The Percentage of Net Sales Method of Estimating Uncollectible Accounts

question 16

True/False

The percentage of net sales method of estimating uncollectible accounts is in violation of the matching principle.

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Definitions:

Oxidation

Oxidation is a chemical reaction involving the loss of electrons by an atom, molecule, or ion.

Oxidation Number

A number assigned to an element in chemical combination which represents the number of electrons lost or gained by an atom of that element in the compound.

Compound

A substance made up of atoms of two or more different elements chemically bonded together.

Oxidation Number

A number that represents the total number of electrons an atom either gains or loses in order to form a chemical bond with another atom.