Match the terms with the definitions.
-A method in which the current year's uncollectible accounts are estimated based on the relationship between the amount of credit sales and the amount of uncollectible accounts in prior years.
A)aging the receivables
B)allowance method
C)bad debt expense
D)direct write-off method
E)matching principle
F)net receivables
G)percentage of receivables method
H)percentage of sales method

Question

Quizplus · Accepted Answer

The percentage of sales method estimates uncollectible accounts based on a percentage of credit sales, using historical data to determine the relationship between credit sales and uncollectible accounts.

Match the Terms with the Definitions