Which of the following statements is true with respect to the percentage-of-credit-sales method for estimating uncollectible accounts?
A. The amount recorded for bad debt expense does not depend on the balance of the allowance for uncollectible accounts.
B. This method does not allow for future uncollectible accounts.
C. Under this method, bad debt expense is recorded at the time of an actual bad debt.
D. This method is referred to as the balance sheet method.
Answer: A
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