There Are Two Approaches That Management Can Use to Estimate

Multiple Choice

There are two approaches that management can use to estimate the amount of credit sales that would prove to be uncollectible, they are the _____. Over time, the two methods, correctly used, will give the same cumulative income and asset totals.U.S.GAAP and IFRS do not require firms to use one or the other, and some firms use both methods.

A) gross amount of sales procedure and the aging-of-accounts-receivable procedure.
B) percentage-of-sales procedure and the aging-of-accounts-receivable procedure.
C) percentage-of-cost of good sold procedure and the amount of accounts-receivable procedure.
D) percentage-of-cost of good sold procedure and the aging-of-notes-receivable procedure.
E) gross amount of sales procedure and the amount of accounts-receivable procedure.