If a company uses the percent of receivables method to estimate uncollectible accounts,the company will first determine the required ending balance in Allowance for Doubtful Accounts;the Uncollectible Accounts Expense will be the difference between that amount and the unadjusted credit balance in the Allowance for Doubtful Accounts.

Question

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This is the correct procedure for using percent of receivables to estimate uncollectible accounts.

If a Company Uses the Percent of Receivables Method to Estimate