Explain why the percentage-of-receivables method is referred to as the balance sheet method and the percentage-of-credit-sales method

Question:

Explain why the percentage-of-receivables method is referred to as the method and the percentage-of-credit-sales method is referred to as the income statement method.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...