A Company Is Using the Percentage-Of-Credit-Sales Method to Estimate Their

Multiple Choice

A company is using the percentage-of-credit-sales method to estimate their bad debts and has noticed that over the past few years there has been a build-up of a credit balance in the Allowance for uncollectible accounts.Which of the following is most likely the cause?

A) They have been consistently overestimating the bad debt expense.
B) They have been consistently underestimating the bad debt expense.
C) They have written off too many accounts.
D) They have been selling fewer items on credit