Match each description to the appropriate term (a-d). Each term may be used more than once.
-This method is based on the theory that older accounts are less likely to be collected.
A)Direct write-off method
B)Aging of receivables method
C)Percent of sales method
D)Allowance method

Question

Quizplus · Accepted Answer

The description matches the aging of receivables method, which analyzes the age of each account and predicts the likelihood of it being collected based on how long it has been outstanding. The other methods (direct write-off, percent of sales, and allowance) do not take into account the age of the receivables as a primary factor in determining whether or not they will be collected.

Match Each Description to the Appropriate Term (A-D)