Estimates are NOT used to record uncollectible accounts expense when using the ________ method.
A)allowance.
B)percent-of-sales.
C)aging-of-receivables.
D)direct write-off.

Question

Quizplus · Accepted Answer

The direct write-off method does not use estimates to record uncollectible accounts expense. Instead, the expense is recorded when a specific customer account is determined to be uncollectible and written off as a bad debt. The other methods listed (allowance, percent-of-sales, and aging-of-receivables) all use estimates to determine the amount of uncollectible accounts expense to record.

Estimates Are NOT Used to Record Uncollectible Accounts Expense When