The Method Being Used to Determine the Amount of the Allowance

Multiple Choice

The method being used to determine the amount of the allowance for doubtful debts that relies on a schedule in which customers' balances are classified by the length of time they have been unpaid, is known as the:

A) direct write-off method.
B) net realisable method.
C) aged accounts receivable method.
D) conservatism method.