Question

The __________ method of estimating bad debts uses both past and current receivables information to estimate the allowance amount. Specifically, each receivable is classified by how long it is past its due date..

Answer 1

Answer: aging of accounts receivable

Explanation: In simple words, it refers to the method in accounting in which the receivables are sorted by their due dates for calculating the and estimating the expense that might occur due to non-payment from their side.

Thus method calls for specifying and calculating each debtor separately for the purpose of calculation