Which of the following is a true statement about a company that uses the allowance method?
A)Uncollectible Accounts Expense is recorded when a receivable is written off.
B)Uncollectible accounts are not recorded until the amount becomes significant.
C)The net realizable value of its accounts receivable is shown on the balance sheet.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

A company that uses the allowance method estimates uncollectible accounts expense before they actually become uncollectible,using a contra asset account known as allowance for doubtful accounts,and reports the net realizable value of accounts receivable on the balance sheet.

Which of the Following Is a True Statement About a Company