The Percentage of Sales Method, Rather Than the Percentage of Receivables

Multiple Choice

The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

A) Use an aging schedule to more closely estimate uncollectible accounts.
B) Eliminate the need for an allowance for doubtful accounts.
C) Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.
D) Use a method that approximates the matching principle.