Two commonly used approaches for estimating uncollected accounts receivable are the percentage-of-sales procedure and the aging-of-accounts procedure. Briefly describe these two approaches. What information do managers need to determine the activity and final account balance under each approach? Which of the two approaches do you think results in a more accurate estimate of net accounts receivable?

Answer rating: 100% (QA)

Percentage of sales technique This opportunity computes dubious money owed cost with the aid of using expecting the share of income or credit score income with a purpose to ultimately fail to be colle... View the full answer