Which of the Following Is NOT Acceptable in Estimating Uncollectible

question 69

Multiple Choice

Which of the following is NOT acceptable in estimating uncollectible accounts receivable under GAAP?

• A) The estimate of uncollectible accounts is based on a percentage of sales for the period.
• B) The estimate of uncollectible accounts is based on a percentage of the accounts receivable balance at the end of a period.
• C) The estimate of uncollectible accounts is based on an aging schedule.
• D) No estimate of uncollectible accounts is made;accounts are written off when it is determined they cannot be collected.

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Definitions:

Successive Approximations

A behavior modification technique involving the reinforcement of behaviors that are progressively closer to the desired behavior.

Reinforcing

The process of strengthening a behavior by providing a consequence that the individual finds rewarding.

Punishing

The act of imposing a penalty or negative consequence for an undesirable action or behavior, with the intent of reducing or eliminating that behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.