The percentage-of-receivables method
finds out about the uncollectible accou-
nts. It does so from finding the wanted
sum of the Allowance for Uncollectible
Accounts.
The sum can be calculated from the a-
mount of entry for uncollectible accou-
nts. That comes from the accounts re-
ceivable ending balance times percen-
tage percieved as uncollectible.
Also, the existing credit balance in all-
owance for uncollectible accounts or
existing debit balance in allowance for
uncollectible accounts.
When the percentage-of-receivables
method is utilized, establishments wi-
ll take any existing balance in the al-
lowance account adjusting for uncoll-
ectible accounts.
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