When using the allowance method for uncollectible accounts t

Balance Sheet approach-answer

Method of estimating uncollectible accounts that focuses on accounts receivable; the accountant calculates the end-of-the-period allowance balance needed according to the aging of the receivable accounts. Also called the balance-sheet approach.

The Aging of A/R method:

- Also called the balance sheet approach because the allowance is estimated before the adjusting entry for bad debt expense is prepared

- Since the aging method is called the balance sheet approach, bad debt expense is determined from the aging schedule of A/R