Question

which method does not involve any risk of bad debt

a) payment in advance

b) payment against shipment on consignment

c) open account

d) documentary bills​

Answer 1

Answer:

The two methods used in estimating bad debtexpense are 1) Percentage of sales and 2) Percentage of receivables.

• Percentage of Sales.

• Percentage of sales involves determining what percentage of net credit sales or total credit sales is uncollectible.

• Percentage of Receivables.