Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
1. An aging of accounts receivable classifies accounts receivable by the length of time that a company has had a business relationships with a particular customer
2. An aging of accounts receivable may be used in estimating the amount of uncollectible accounts receivable
3. The percent of receivables method of estimating uncollectible accounts expense is sometimes called the income statement method
4. When Uncollectible Accounts Expense is determined based on percent of receivables, the existing balance in the Allowance for Doubtful Accounts must be considered
5. Uncollectible Accounts Expense may be calculated using a percentage of receivables or a percentage of sales