Asked by Griffinn Kluth on Apr 25, 2024
The two methods of accounting for uncollectible accounts are (a) percentage of sales and (b) percentage of receivables.
Percentage of Sales
A financial ratio that compares a company's profitability, expanses, or other financial indicators to its total sales, often expressed as a percentage.
Percentage of Receivables
A method used to estimate the amount of receivables that will not be collected by calculating a percentage based on historical data.
- Determine the techniques used for approximating the value of accounts receivable that cannot be collected.
Learning Objectives
- Determine the techniques used for approximating the value of accounts receivable that cannot be collected.
Related questions
A Contra Asset That Represents the Amount of Estimated Uncollectible ...
This Method Is Based on the Theory That Older Accounts ...
This Method Is Most Often Used by Small Companies with ...
Discuss the Two Methods for Recording Bad Debt Expense ...
Discuss the Two Methods for Recording Bad Debt Expense ...