The Challenge Businesses Face When Estimating the Allowance for Previously

Multiple Choice

The challenge businesses face when estimating the allowance for previously recorded sales is that:

A) at the time of the sale,it is not known which particular customer will not make their payment.
B) past default rates are not a good predictor of future default rates.
C) in bad economic times,fewer customers will have problems with their payments.
D) those sales have been closed into retained earnings.