d e The realizable value of accounts receivable is determined by i adding allowance for doubtful accounts to account receivables ii adding bad debt expense to allowance for doubtful accounts subtracting allowance for doubtful accounts from account receivables iv subtracting bad debt expense from allowance for doubtful accounts As time increases for overdue accounts, i it is more unlikely customers will pay off their debts. ii it is more likely these customers will pay off their debts. the likelihood these customers will pay does not change. iv charging higher interest will result in quicker payment. Aging of the accounts receivable is i a way of determining the dollar value of accounts likely to go unpaid based on the length of time accounts are overdue part of the direct method of writing off accounts not an acceptable method for determining uncollectible accounts using GAAP. iv also called the Income Statement approach. Note receivable is i created when a customer buys on account ii created when a customer cannot afford to buy a product from the seller. created when a customer buys on credit for more than one month and is charged interest. iv the same as an account receivable ii iii h Interest is i expressed as a percent for one year ii the cost of borrowing money the return on money deposited in a bank account iv all of the above ***