Jill Epp, a friend of yours, overheard a discussion at work about changes her employer wants to make in accounting for uncollectible accounts. Jill knows little about accounting, and she asks you to help make sense of what she heard. Specifically, she asks you to explain the differences between the percentage-of-sales, percentage-of-receivables, and the direct write-off methods for uncollectible accounts.
Instructions
In a letter of one page (or less), explain to Jill the three methods of accounting for uncollectibles. Be sure to discuss differences among these methods.