The Percentage Of Sales Basis Of Estimating Expected Uncollectibles

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The percentage of sales basis of estimating expected uncollectibles. A. emphasizes the matching of expenses with revenues. B. is not generally accepted as a basis for estimating bad debts. C. emphasizes cash realizable value. D. emphasizes balance sheet relationships. A. The matching principle. A. necessitates the .In the same year as the credit sale. Allowance for Doubtful Accounts on the balance sheet. is offset against accounts receivable. Two bases for estimating uncollectible accounts are: percentage of receivables and percentage of sales. The percentage of receivables basis for estimating uncollectible accounts emphasizes..The percentage-of-receivables basis of estimating uncollectibles produces a better estimate of cash realizable value---a balance sheet viewpoint. The balance of the Allowance for Doubtful Accounts account at January 1 of the current year was $6,800 credit. During the year, accounts receivable in the amount of $9,000 .-When companies write off specific uncollectible accounts, they debit Allowance for Doubtful Accounts and credit Accounts Receivable. Net Realization Value. the net amount a company expects to receive in cash. Estimating the Allowance. -Percentage of sales Emphasis on Income Statement relationships -Percentage of .