The method of accounting for losses from uncollectible accounts that produces a proper valuation of the accounts receivable on the balance sheet is (Points : 5)
the allowance method based ...
... on aging the accounts receivable.
the allowance method based on a percentage of net credit sales.
the direct charge-off method.
either the allowance method or the direct charge-off method.
Percentage of total accounts receivable method. [ [ One way companies derive an estimate for the value of bad debts under the allowance method is to calculate bad debts as a percentage of the ...
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