Asked by Roseline Oshiyoye on Jul 21, 2024
Verified
The aging of accounts receivable method involves classifying each account receivable by how long it is past its due date and estimating the percent of each uncollectible class.
Aging of Accounts Receivable Method
An accounting technique used to estimate the amount of uncollectable accounts receivable based on their age.
- Utilize the percentage method derived from sales and the accounts receivable aging technique for the approximation of bad debts.
Verified Answer
NH
Nhung Hu?nhJul 23, 2024
Final Answer :
True
Explanation :
The aging of accounts receivable method does involve classifying each account receivable by how long it is past its due date and estimating the percent of each uncollectible class.
Learning Objectives
- Utilize the percentage method derived from sales and the accounts receivable aging technique for the approximation of bad debts.
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