The Percent-Of-Sales Method of Computing Uncollectible Accounts for Accounts Receivable

question 100

Multiple Choice

The percent-of-sales method of computing uncollectible accounts for Accounts Receivable is used by some companies because:

• A)it ensures that Accounts Receivable are reported at net realizable value.
• B)it is more accurate than the aging method.
• C)it is easier and quicker to apply.
• D)it fine tunes their allowance for uncollectibles.

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