The percent of receivables method to estimate uncollectible accounts expense is also known as:
A)the income statement approach.
B)the direct write-off approach.
C)the credit sales approach.
D)the balance sheet approach.

Question

Quizplus · Accepted Answer

The percent of receivables method is known as the balance sheet approach because it focuses on estimating uncollectible accounts based on the accounts receivable balance, which is a balance sheet item.

The Percent of Receivables Method to Estimate Uncollectible Accounts Expense