The Advantage of Relating a Company's Bad Debt Experience to Its

question 36

Multiple Choice

The advantage of relating a company's bad debt experience to its accounts receivable is that this approach

• A) Gives a reasonable correct statement of receivables in the balance sheet
• B) Relates bad debts expense to the period of sale
• C) Is the only generally accepted method for valuing accounts receivable
• D) Makes estimates of uncollectible accounts unnecessary