which method does not involve any risk of bad debt

a) payment in advance

b) payment against shipment on cons

1 thought on “which method does not involve any risk of bad debt<br /><br />a) payment in advance<br /><br />b) payment against shipment on cons”

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.

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