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.

---

Definitions:

Marketing Environment

Refers to the external forces that affect a company's ability to engage with consumers, including social, technological, economic, environmental, and political factors.

Mainstream Reader

A person who prefers reading popular or widely accepted literature, typically the most common and commercially successful works.

Baby Boomers

A demographic group referring to people born during the post-World War II baby boom approximately between 1946 and 1964.

Largest Population

The highest number of individuals residing within a particular geographic area, city, or country.