Regarding this array: Firms usually use the Allowance Method to estimate an Allowance for Uncollectible Accounts that will be a contra account to the Accounts Receivable amount on the Balance Sheet. The Allowance Method involves estimating the Allowance for Uncollectible Accounts every period. Why?

a. That depreciation expense varies from time to time
b. That at any balance sheet date, it is not known how much of the Accounts Receivable amount will be collected
c. To increase leverage
d. To allow managers discretion for setting up the accounting numbers to meet or beat analysts' forecasts
e. None of the above is correct
a. That depreciation expense varies from time to time
b. That at any balance sheet date, it is not known how much of the Accounts Receivable amount will be collected
c. To increase leverage
d. To allow managers discretion for setting up the accounting numbers to meet or beat analysts' forecasts