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The percentage of accounts receivable method multiplies the current accounts receivable balance by the estimated uncollectible percentage to arrive at ________.

User Kevaughn
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Answer: Adjusted allowance for bad debts

Step-by-step explanation:

The Percentage of Accounts receivable method estimates the allowance for bad debt in a period by multiplying the current receivable balance by an uncollectible percentage which is estimated by the business based on its history with bad debts.

This allowance is then posted to the Allowance for doubtful debt accounts and removed from the Accounts receivable.

User Allen Zeng
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