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1) What are some factors considered in estimating the amount of uncollectible accounts receivable? 2) What...

1) What are some factors considered in estimating the amount of uncollectible accounts receivable?

2) What types of costs do businesses avoid when they accept major credit cards as compared with handling credit sales themselves?

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Ans- 1) What are some factors considered in estimating the amount of uncollectible accounts receivable?

One way to estimate the account of uncollectible accounts recievable is to prepare a aging. An aging of accounts receivables lists every customer's balance and then sort each customer's balance according to the amount of time since the date of sale.

Factors for estimating uncollectible account receivable include;

a) The percentage of uncollectible accounts from years past.

b) Adjustments for new circumstances that are anticipated to be experienced in the future.

c) Industry averages or experiences of similar businesses.

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