The Method of Accounting for Losses from Uncollectible Accounts That

Multiple Choice

The method of accounting for losses from uncollectible accounts that results in a valuation of the accounts receivable on the balance sheet that is a more reasonable estimate of the actual amount expected to be collected is

A) the direct charge-off method.
B) the allowance method based on a percentage of net credit sales.
C) either the allowance method or the direct charge-off method.
D) the allowance method based on aging the accounts receivable.