What should do the owner asks you to change the method

Assignment Help Accounting Basics
Reference no: EM132733155

Historically, your company has calculated bad debts using an aging of accounts receivable. Near the end of the fiscal year, the company is in a cash crunch and needs to borrow money from the bank, using accounts receivable as collateral. The owner of the company knows that many of the accounts receivable are more than 90 days past due, resulting in net receivables equal to only 80% of total receivables.

Problem 1: The owner asks you to change the method of estimating bad debts to a flat 3% of receivables. What should you do?

Reference no: EM132733155

Questions Cloud

Describing the interrelationship among a bacterial pathogen : Construct a paragraph or two describing the interrelationship among a bacterial pathogen, the affected host, and potential antimicrobial drugs in the developmen
What is the accumulated value of all the payments : What is the accumulated value of all the 24 payments made in 2019 and 2020 on December 31, 2020
Identification of business idea : In a one to two page paper, present an overview of your business idea. You must include the type of business idea
Blood agar and incubated at the proper temperature : Growth after 24 hours produced colonies surrounded by clearing of the blood. Identify the specific species and explain
What should do the owner asks you to change the method : Historically, your company has calculated bad, The owner asks you to change the method of estimating bad debts to a flat 3% of receivables. What should you do?
Role of epidemiology that relates to nursing : Identify and explain a role of epidemiology that relates to nursing.
What amount should lank report as interest expense : Interest is payable semiannually on January 1 and July 1. What amount should Lank report as interest expense for the six months ended June 30, 2020?
Prepare the appropriation account for the year ended May : The partnership are entitled to interest on their capital accounts at 6% capital at annum. Prepare the appropriation account for the year ended 31 May 2016
What amount must be deposited on january : What amount must be deposited on January 1, 2020 to be able to withdraw P5,000,000 by December 31, 2024 if the deposit earns 14% interest compounded

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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