Which of the following procedures provides the most relevant information to determine the adequacy of the allowance for doubtful accounts receivable? A. Confirm the receivables. B. Test the controls over the write-off of accounts receivable to ensure that management approves all write-offs. Ⓒ Analyze the following month's payments on the accounts receivable balances outstanding. D. Analyze the allowance through an aging of receivables and an analysis of current economic da
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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