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10 October, 18:25

Which of the two methods of estimating uncollectibles provides for the most accurate estimate of the current net realizable value of the receivables?

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  1. 10 October, 18:30
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    The correct answer is an estimate bases on analysis of receivables.

    Explanation:

    It is one of the most important assets, since it is the most liquid asset after cash in an economic entity. Accounts receivable represent the sale or provision of any good or service that will be recovered in money in partial amounts.

    It can originate in different ways, but in all companies or economic entities it creates a right in which it requires the third party to pay it. Otherwise, the company has the right to recover what is sold on credit.

    These types of accounts require special treatment for the following reasons:

    - They represent money in the short, medium and long term.

    - Part of the liquidity of the company is represented in it.

    - It is changing, which means that it is in constant motion and needs revision and analysis.
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