4 accounting questions 0

 

Show your work/computations. Explain your answers. 

 

1. What are the essential features of the allowance method of accounting for bad debts? Why is the direct write-off method not considered acceptable per GAAP?

 

2. The Allowance for uncollectible accounts currently has a credit balance of $900.  After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-accounts method, the company’s management estimates that uncollectible accounts will be $15,000.  What will be the amount of Uncollectible accounts expense reported on the income statement?

 

3. The Allowance for uncollectible accounts currently has a debit balance of $900.  After analyzing the accounts in the accounts receivable subsidiary ledger, the company’s management estimates that uncollectible accounts will be $15,000.  What will be the balance of the Allowance for uncollectible accounts reported on the balance sheet?

 

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