Answer:
C. The aging method.
Explanation:
The percentage-of-receivables method is a balance sheet method is also called the aging method and is used to estimate bad loans that a business has as a percentage of ending accounts recievables. Usually a process called aging of accounts receivable is used.
The aging method involves estimation of companie's recievables not collected by sorting customer's unpaid invoices by date into four columns: invoice amount not due yet, invoice amounts 1-30 days past due, invoice amounts 31-60 days past due, and invoice amounts greater than 61 days past due.
