Question

Chip Company is making estimates of bad debts and warranties at year end, December 31, 2009. The firm believes that it will have declining revenue in 2010, so the accounting manager suggests the firm record $50,000 for bad debts expense this year, even though the aging schedule indicates that only $30,000 needs to be recorded. Explain how doing that could help net income in 2010.



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  • CreatedSeptember 01, 2014
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