On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the A. Uncollectible accounts expense for the yearB. total of the accounts receivables written-off during the year C. total estimated uncollectible accounts as of the end of the yearD. sum of all accounts that are past due

Question

Business

Walter Ashley

23 April, 12:59

On the balance sheet, the amount shown for the Allowance for Doubtful Accounts is equal to the A. Uncollectible accounts expense for the yearB. total of the accounts receivables written-off during the year C. total estimated uncollectible accounts as of the end of the yearD. sum of all accounts that are past due

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Janessa Lam · Answer 1

Option C) total estimated uncollectible accounts as of the end of the year

Explanation:

With the Allowance method the company has to recognize an estimation of the losses it anticipates at the end of each accounting period, at this moment the balance of the Allowance for Doubtful Accounts is defined for the rest of the year as a percentage of the net sales.