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Question

describe the allowance method of accounting for uncollectible accounts and the two bases that are generally used to calculate the allowance.

Answer

Now, class, in order to determine the allowance for uncollectible accounts, we must first multiply the balance of the accounts receivable in each aging category by a reserve rate which is displayed in the table below. As you may have noticed, the reserve rate is higher for older receivables since they have a lower likelihood of being collected. Can anyone tell me what two techniques are used in the allowance method for estimating uncollectible accounts? That's right, the two primary approaches are the percentage of credit sales method and the percentage of receivables method. The percentage of sales approach calculates the estimated proportion of credit sales that will become uncollectible accounts for the period. If you want to learn more about this topic, please take a look at this resource: brainly.com/question/29306119 #SPJ4.