Under the Income Statement Method of Estimating Debts Likely to Be

Multiple Choice

Under the income statement method of estimating debts likely to be bad:

A) a percentage, based on past experience, is applied to profit.
B) accounts receivable are 'aged' to establish likely bad debts.
C) a percentage, based on past experience, is applied to credit sales.
D) an estimate of bad debts is made by the accountant.