The accounts receivable method to estimate bad debts obtains the estimated balance in the Allowance for Doubtful Accounts in one of two ways: (1) computing the percent uncollectible from the total accounts receivable or (2) aging accounts receivable.

Question

Quizplus · Accepted Answer

The statement accurately describes the two methods used to estimate the balance in the Allowance for Doubtful Accounts using the accounts receivable method.

The Accounts Receivable Method to Estimate Bad Debts Obtains the Estimated