Provision for uncollectible accounts on sales


Question: Haden Company bases its provision for uncollectible accounts on sales. At the end of each of the past four years, the ratio of Allowance for Doubtful Accounts to Accounts Receivable at the end of the year has been greater than it was for the prior year. What does this suggest? O the ratio is greater than needed and should be reduced the ratio is smaller than needed and should be increased the ratio does not need to be adjusted neither a, b, or c is correct

 

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Accounting Basics: Provision for uncollectible accounts on sales
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