All of the following statements regarding valuation of receivables under U.S.GAAP and IFRS are true except:
A)Both require the allowance method for uncollectibles unless uncollectibles are immaterial.
B)Both require that receivables be reported net of estimated collectibles.
C)Both require that the expenses for estimated collectibles be recorded in the same period revenues generated from those receivables are recorded.
D)Both allow using percent of sales,percent of receivables,or aging of receivables to estimate uncollectibles.
E)Both require that the expense related to uncollectibles be recorded when the receivable is determined to be uncollectible.

Question

Quizplus · Accepted Answer

Under both U.S. GAAP and IFRS, the expense related to uncollectibles is recorded using the allowance method, which estimates uncollectibles in the same period as the related revenue, not when the receivable is determined to be uncollectible.

All of the Following Statements Regarding Valuation of Receivables Under