When the estimate of the losses from uncollectible accounts is based on the aging method, the primary concern is proper valuation of the accounts receivable on the balance sheet.

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The aging method is used to estimate the amount of uncollectible accounts receivable, but the key concern is ensuring that the balance sheet accurately reflects the current value of the remaining accounts receivable. Proper valuation of the accounts receivable involves determining the allowances for doubtful accounts and ensuring that they are reported accurately on the balance sheet.

When the Estimate of the Losses from Uncollectible Accounts Is