The Percent-Of-Sales Method of Computing Uncollectible Accounts for Accounts Receivable

Multiple Choice

The percent-of-sales method of computing uncollectible accounts for Accounts Receivable is used by some companies because:

A) it ensures that Accounts Receivable are reported at net realizable value.
B) it is more accurate than the aging method.
C) it is easier and quicker to apply.
D) it fine tunes their allowance for uncollectibles.