7 1 points TB 08-67 An accounting procedure that (1) estimates a... An accounting procedure that (1) estimates and reports bad debt expense from credit sales during the period of the sales and (2) reports accounts receivable at the amount of cash inflow that is expected from their collection is the Multiple Choice Allowance method of accounting for bad debts Aging of accounts receivable 1 7 Allowance method of accounting for bad debts points Aging of accounts receivable Adjustment method for uncollectible debts Direct write-off method of accounting for bad debts Cash basis method of accounting for bad debts 8 1 points TB 08-94 The days' sales The days' sales uncollected ratio Multiple Choice Is used to evaluate the liquidity of receivables Is calculated by dividing accounts receivable by sales Measures a company's ability to pay its bills on time 80 Is used to evaluate the liquidity of receivables 1 Is calculated by dividing accounts receivable by sales points Measures a company's ability to pay its bills on time Measures a company's debt to income Is calculated by dividing sales by accounts receivable