Match the items below by choosing the appropriate code letter :
-A measure that computes the allowance for doubtful debts.
A) Direct write-off method
B) Cash
C) Receivables turnover
D) Aged accounts receivable
E) Invest idle cash
F) Cancelled cheques
G) NSF cheques
H) Outstanding cheques
I) Petty cash receipt
J) Cash equivalents

Question

Quizplus · Accepted Answer

The aged accounts receivable method computes the allowance for doubtful debts by analyzing receivables based on their age, with older accounts often considered more likely to be uncollectible. This method helps businesses estimate the amount of receivables that may not be collected.

Match the Items Below by Choosing the Appropriate Code Letter