The Existing Balance In Allowance For Doubtful Accounts Is Considered In The?

Under the Percentage of Receivable Basis / Method, the existing balance in the Allowance for Doubtful Accounts / Provisions For Doubtful Debts is considered in computing the estimated Bad Debts Expense / Doubtful Debts because the balance of Allowance for Doubtful Accounts is the estimated amount Uncollectible Accounts Receivable that will be considered as Uncollectible Accounts Expense or Doubtful Debts or estimated bad debts that may not be recovered in future from our customers for the Credit Sales.

This method is also called Balance Sheet-Approach.