The Method of Accounting for Losses from Uncollectible Accounts That

Multiple Choice

The method of accounting for losses from uncollectible accounts that produces a proper valuation of the accounts receivable on the balance sheet is

A) the allowance method based on aging the accounts receivable.
B) the allowance method based on a percentage of net credit sales.
C) the direct charge-off method.
D) either the allowance method or the direct charge-off method.