dentify specific characteristics of the three types of allowance methods.

Which of the following statements is true when using the percentage of net credit sales method?

• a.)
• This method is determining the actual dollar value of credit sales made for which payment will not be collectible.
• b.)
• This method is estimating a percent of cash sales made for which payment will not be counted.
• c.)
• This method is estimating a percent of credit sales made for which payment will not be collectible.
• d.)
• This method is estimating a percent of sales made for which payment will not be collectible.