Explain elements that are relevant in a business contract

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1. As the accountants of the business, we need to fully understand contracts and the performance obligation required by the company when we recognize revenue to report it in the financial statements. List and explain 3 elements that are relevant in a business contract?

2. In the allowance method, an estimated percentage is applied to the total balance of the aging accounts receivable balance. Therefore, the higher the total A/R balance, the higher the estimated amount of uncollectable accounts become Under the allowance method, how does one records an uncollectible account?

Reference no: EM132324776

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