You have been hired as a consultant by a parts

Reference no: EM13607518

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: EM13607518

Questions Cloud

These expenditures were incurred by patnode company in : these expenditures were incurred by patnode company in purchasing land cash price 60000 accrued taxis 5000 attorneys

Calculate the quality of the water when the process has : one liter of saturated liquid water is contained in a piston-cylinder assembly. initiallythe water pressure is 2bar.

Fenwick corporations manufacturing and finished goods : fenwick corporations manufacturing and finished goods warehouse facilities burned to the ground on january 31. the

Maria gonzalez opened a veterinary business in nashville : maria gonzalez opened a veterinary business in nashville tennessee on august 1. on august 31 the balance sheet showed

You have been hired as a consultant by a parts : you have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting

Assume the following situation a gurney is pushed across a : assume the following situation. a gurney is pushed across a level rug in which the coefficient of friction is 0.15. if

The stockholders equity accounts of sigma corporation on : the stockholders equity accounts of sigma corporation on january 1 2010 were as follows.preferred stock 8 100 par

Determine the temperature oc and the total enthalpy kj when : a 14 l of rigid container is filled with 10 kg of r-134a at 300 kpa. determine the temperature oc and total enthalpy kj

For each of the two months calculate the equivalent units : old victrola inc. produces top-quality stereos and uses process costing. the manufacture of stereos is such that direct

User Account

All Pages