The estimate of bad debts can be based on either a percentage of net sales, or:
A. a percentage of aged receivables.
B. a percentage of actual bad debts deemed uncollectible last period.
C. a percentage of next month’s anticipated sales.
D. None of these
Answer:A
The estimate of bad debts can be based on either a percentage of net sales, or:
A. a percentage of aged receivables. B. a percentage of actual bad debts deemed uncollectible last period. C. a percentage of next month’s anticipated sales. D. None of these