In Determining the Adequacy of the Allowance for Uncollectible Accounts

Multiple Choice

In determining the adequacy of the allowance for uncollectible accounts, the least reliance should be placed upon which of the following?

A) The credit manager's opinion.
B) An aging schedule of past due accounts.
C) Subsequent year collections of amounts in accounts receivable at the balance sheet date.
D) Ratios calculated showing the past relationship of the valuation allowance to net credit sales.