The two methods of accounting for uncollectible receivables are the O direct method and the indQuestionThe two methods of accounting for uncollectible receivables are the O direct method and the indirect method O percent of sales method and the analysis of receivables method cash method and t...
The two methods of accounting for uncollectible receivables are the O direct
method and the indirect method O percent of sales method and the analysis of
receivables method cash method and the accrual method O allowance method
and the direct write-off method
Answer & Explanation
The two methods of accounting for uncollectible receivables are the allowance
method and the direct write-off method.
Explanation:
1. Allowance Method:
o This method involves estimating uncollectible accounts at the end
of each period.
o A company will create an allowance for doubtful accounts, which
is a contra-asset account that reduces the total accounts receivable
to reflect only those amounts expected to be collected.
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