User Account

All Pages

What are the deficiencies of the direct write off method

Assignment Help Accounting Basics
Reference no: EM131113093

1. Bad-Debt Accounting Simms Company has significant amounts of trade accounts receivable. Simms uses the allowance method to estimate bad debts instead of the direct write-off method. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected.

(a) What are the deficiencies of the direct write-off method?

(b) What are the two basic allowance methods used to estimate bad debts, and what is the theoretical justification for each?

(c) How should Simms account for the collection of the specific accounts previously written off as uncollectible? 

Reference no: EM131113093

Questions Cloud

Do you find their sales practices to be ethical : Did you believe the retailer is sacrificing revenue for you the consumers' benefit? Why or Why not? Do you find their sales practices to be ethical and beneficial to the consumer or perhaps unethical and misleading?
Compute the elasticities for each independent variable : Using the formula and information given, first calculate the Q Q = -5,200 – 42(500) + 20(600) + 5.2(5,500) + 0.20(10,000) + 0.25(5,000) = Now we can compute the elasticities for each independent variable: ED = ∂QD/∂P * P/QD = – 42 * 500/Q (what you c..
Prepare a three years financial projection on anthem inc : Prepare a three Years Financial Projection on Anthem Inc (Health Insurance Company). For Milestone, you need to make 3-year projection of the target company's income statement (P&L). Here is an example of a full-blown P&L.
What is martin after-tax consumption in period two : Martin lives for two periods, earning $50,000 in income in period 1, which he consumes or saves for period 2. The interest rate on his saving is 10% per year. Interest income is taxed at rate τ = 30%. Draw Martin’s intertemporal budget constraints wi..
What are the deficiencies of the direct write off method : What are the two basic allowance methods used to estimate bad debts, and what is the theoretical justification for each?
Calculate the herfindahl-hirschman index : 6 firms makeup most of an industry and have the following market shares: Calculate the Herfindahl-Hirschman Index (HHI), showing all work, given present market shares. Calculate the Herfindahl-Hirschman Index (HHI), showing all work, assuming Firm C ..
Recommendations on the reporting : The client has asked for help in reporting some securities, and the audit manager on the job has asked you for recommendations on the reporting.
What entry should national american bank make to record : Assume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2010, one of Toni Braxton's creditors, the National American Bank, determined that Toni Braxton would pay back only ..
Value of considering qualitative performance measures : Consider the four problematic sales people (Caplan, Furness, Gibson and Eaton) at Milford. We have both quantitative and qualitative performance measures. In general, what is the value of considering qualitative performance measures and what are the ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journalize the entry to record midlands purchase

Journalize the entry to record Midland's purchase of Shipley Wireless for $320,000 cash plus a $480,000 note payable.

  Monthly schedule of cash receipts

Seventy percent of Diamond Beauty Supply shop sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. Prepare a monthly schedule of cash rece..

  A company purchased a machine on january 1 of the current

a company purchased a machine on january 1 of the current year for 750000. calculate the annual depreciation expense

  Dec 31 recorded depreciation on the remaining truck it has

the following transactions adjusting entries and closing entries were completed by king furniture co. during a

  The best means of verification of cash inventory office

the best means of verification of cash inventory office equipment and nearly all other assets in a physical count of

  Purpose of the accounting process

1. The type of business organization that can continue indefinitely is known as a: 2. The purpose of the accounting process is to provide financial information about:

  Allocates expenses to revenues in the proper period

Requires that information significant enough to affect the decision of reasonably informed users should be disclosed. (Do not use full disclosure principle.)

  Gain-loss recognizing the exchange

What gain or loss is recognized by the corporation when it issues its shares to John? What is the basis to the corporation of the property it received from John?

  Rachel cake factory normally sells their specialty cake for

rachel cake factory normally sells their specialty cake for 22. an offer to buy 100 cakes for 19 per cake was made by

  County highway improvement bonds

Hersh inherits $50,000 from his grandfather. He receives the money on January 1 and immediately invests $25,000 in General Motors bonds that pay 8% annual interest and $25,000 in Lane County highway improvement bonds with a 6% annual interest rate..

  Star corporation issued both common and preferred stock

star corporation issued both common and preferred stock during 20x6. the stockholders equity sections of the companys

  Why are noncash transactions such as the exchange of

why are noncash transactions such as the exchange of common stock for a building for example included on a statement of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd