The allowance method that assumes a given percent of a company’s credit sales for the period is uncollectible is:___________.
a. The percent of sales method.
b. The percent of accounts receivable method.
c. The aging of accounts receivable method.
d. Direct write-off method.
e. Factoring method.

In simple words, The percentage of sales method can be defined as the financial forecasting model under which all financial line items such as cost of goods sold, stock levels, and funds are expressed in the form of percentage of total sales made from a company's accounts. The analyst then used those projected sales to estimate he future values of those items.

Answer Link

ayfat23 ayfat23 · Answer 2 · 2021-12-09T14:57:27+01:00

The allowance method with the assumption that a given percent of a company’s credit sales for the period is uncollectible is: The percent of sales method.

The percent of sales method serves as financial forecasting model whereby financial line items such as costs of goods sold as well as inventory, and cash are been calculated as a percentage of sales.

It usually use the assumption that particular percent of credit sales in that particular period is uncollectible .

Therefore, option A is correct.

Learn more at:

https://brainly.com/question/18957404?referrer=searchResults

The allowance method that assumes a given percent of a company’s credit sales for the period is uncollectible is:___________. a. The percent of sales method. b. The percent of accounts receivable method. c. The aging of accounts receivable method. d. Direct write-off method. e. Factoring method.

Respuesta :

Otras preguntas

The allowance method that assumes a given percent of a company’s credit sales for the period is uncollectible is:___________.
a. The percent of sales method.
b. The percent of accounts receivable method.
c. The aging of accounts receivable method.
d. Direct write-off method.
e. Factoring method.