A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:
a) Aging of investments method.
b) Percent of accounts receivable method.
c) Direct write-off method.
d) Aging of accounts receivable method.
e) Percent of sales method.
Accounts receivables are assets that involves many transactions. This is presented in the current section in the balance sheet.
Answer and Explanation:
1. d) Aging of accounts receivable method.
This methods display thoroughly the age of the receivables as well as its balance.
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from Accounting 101: Financial AccountingChapter 7 / Lesson 1