Draft response in the form of a memo to the president

Assignment Help Finance Basics

Reference no: EM131520907

Question: You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the company should use in some key areas. In the area of receivables, the company president does not understand your recommendation to use the allowance method for uncollectible accounts. She stated, "Financial statements should be based on objective data rather than the guesswork required for the allowance method. Besides, since my uncollectibles are fairly constant from period to period, with significant variations occurring infrequently, the direct write-off method is just as good as the allowance method."

Required: Draft a one-page response in the form of a memo to the president in support of your recommendation for the company to use the allowance method.

Reference no: EM131520907

Questions Cloud

Interferences and distortions of messages : In this chapter, we learn that leaders should be able to prevent the interruptions and overcome most of the interferences and distortions of their messages.

How is demand likely to affect dealers willingness : How is demand likely to affect dealers' willingness to negotiate prices with Smart Car buyers? Why is bundle pricing appropriate for the various models of cars

How you intend to organize the body of your paper : Include a mapping statement following the purpose statement that briefly lists the key points sequentially of how you intend to organize the body of your paper.

What type of business model is manifest using : What type of business model is Manifest using? What external factors do you think will change the types of services Manifest Digital may offer its clients

Draft response in the form of a memo to the president : You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the company should use in some key.

Evolution of economic integration in europe : Explain the levels of economic integration and trace the evolution of economic integration in Europe.

By how much would total assets and expenses be misstated : Ernie Upshaw is the supervising manager of Sleep Tight Bedding. At the end of the year, the company's accounting manager provides Ernie.

Plan for separation of personal and professional ethics : Regardless of your personal ethical views, you are expected to follow organizational ethics and standards of your employer.

Create a common-sized income statement : Create a common-sized income statement for the three years. What conclusions can you draw from the different parts of the statement

User Account

All Pages