Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables.

Question

Quizplus · Accepted Answer

The allowance method involves creating an allowance account to account for possible uncollectible receivables, which is established before knowing which specific receivables will not be collected. Therefore, it provides in advance for uncollectible receivables.

Of the Two Methods of Accounting for Uncollectible Receivables, the Allowance