The Aging of the Accounts Receivable Approach to Estimating Uncollectible

question 116

Multiple Choice

The aging of the accounts receivable approach to estimating uncollectible accounts does not:

• A)Take into consideration the existing balance in the Allowance for Doubtful Accounts.
• B)Utilize a percentage of probable uncollectible accounts for each age group of accounts receivable.
• C)Stress the relationship between uncollectible accounts expense and net sales.
• D)Tend to give a reliable estimate of uncollectible accounts because of the consideration given to the collectability of specific accounts receivable.