When Using an Aging Method for Estimating Uncollectible Accounts

question 116

Multiple Choice

When using an aging method for estimating uncollectible accounts:

• A)Older accounts are considered less likely to be collected.
• B)The number of days the account is past due is not considered.
• C)Older accounts are considered more likely to be collected.
• D)No estimate of uncollectible accounts is made.

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Definitions:

Demand

The quantity of a specific good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Supply

The total amount of a specific good or service that is available to consumers at a given time and price.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.