Question

1. Why might it be argued that uncollected balance percentages are superior to other measures used to monitor customer payment patterns?

Answer 1

Uncollected balance percentage method is supported against other mehtod to monitor customer payment patterns because it directly links to the core issue and tells the balance which needs to be collected yet. The key point in studying customer payment pattern isn't the revenue received but the payment that isn't received . So this balance percentage directly tells you that. And since it's in percentage it's easy to.comprehend as what proportion of revenues accrued are not received yet.