Elite Hardware is a small hardware store in the rural township of Rexburg that rarely extends credit

Question:

Elite Hardware is a small hardware store in the rural township of Rexburg that rarely extends credit to its customers in the form of an account receivable. The few customers that are allowed to carry accounts receivable are long-time residents of Rexburg and have a history of doing business at Elite Hardware. What method of accounting for uncollectible receivables should Elite Hardware use? Why?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...