Which of the followings concepts relates to using the allowances method in accounting for accounts receivable? A) Bad debt expense is an estimates that is based on historical and prospective information. B)  Bad debt expense is based on the actual amounts determined to be uncollectible.C) Bads debt expense is an estimate that is based only on an analysis of the receivables aging.D) Bad debt expense is managments determination of which accounts will be sent to the attorney for collection.

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Asked Nov 24, 2019
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Which of the followings concepts relates to using the allowances method in accounting for accounts receivable? 

A) Bad debt expense is an estimates that is based on historical and prospective information. 

B)  Bad debt expense is based on the actual amounts determined to be uncollectible.

C) Bads debt expense is an estimate that is based only on an analysis of the receivables aging.

D) Bad debt expense is managments determination of which accounts will be sent to the attorney for collection.

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Allowance method is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period. Under this method,...

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