Which of the Following Statements Is True with Respect to the Percentage-Of-Credit-Sales

question 19

Multiple Choice

Which of the following statements is true with respect to the percentage-of-credit-sales method for estimating uncollectible accounts?

• A)The amount recorded for bad debt expense does not depend on the balance of the allowance for uncollectible accounts.
• B)This method is referred to as the balance sheet approach.
• C)This method does not allow for future uncollectible accounts.
• D)Under this method,bad debt expense is recorded at the time of an actual bad debt.