The allowance method that assumes a given percent of a company's credit sales for the period is uncollectible is:

A) The percent of sales method.
B) The percent of accounts receivable method.
C) The aging of accounts receivable method.
D) Direct write-off method.
E) Factoring method.

Percent of Sales Method

A financial forecasting approach that estimates future financial statements' items as a percentage of projected sales.

Allowance Method

An accounting technique that estimates and accounts for bad debts as an expense before they are actually confirmed as uncollectible.