The balance in the Allowance for Uncollectible Accounts is considered prior to the year-end adjustment under:
A)the direct write-off method.
B)the percent-of-sales method.
C)the aging-of-receivables method.
D)both the percent-of-sales and aging-of-receivables methods.

Question

Quizplus · Accepted Answer

The aging-of-receivables method considers the existing balance in the Allowance for Uncollectible Accounts before making the year-end adjustment. This method evaluates the receivables based on their age to estimate the allowance needed for uncollectible accounts, adjusting the existing balance accordingly.

The Balance in the Allowance for Uncollectible Accounts Is Considered