QuickBooks (QB) is a user friendly, accounting software package used mostly by small and medium-sized corporations that

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Question:

QuickBooks (QB) is a user friendly, accounting software package used mostly by small and medium-sized corporations that accept business payments, manage, and pay bills, and pay salaries You are the manager of a physical therapist's office, oversee reporting an estimate of the bad debt expense each month, and are familiar with the use of QB to estimate bad debt. Typically, in each period 4% of patients do not pay their invoices.

Select one of the questions to discuss with your classmates:

Why do the official records in the current period predict the bad debts which might occur in the future?

What are the two methods for calculating bad debt expense, which is best for this office, and why?

Because bad debt is an estimate, why could fraud be involved with the reporting of this number?

How would underreport affect the income statement?

Why might the office overestimate the bad debt in a period?

Any time management makes an estimate, there is the risk of earnings management or fraud.

Accounting for bad debts requires management to make an estimate of the future collectability of receivables.

Discuss why this could be an area at risk for earnings management. Your initial posting should be 250-500 words and must be submitted by Thursday, 11:59 MT, of this week. By Sunday at 11:59 MT, respond to two or more of your classmates’ initial posts in one of the following ways: Build on something interesting or provocative that your classmate wrote. Explain why and how you see things differently.

Ask a probing or clarifying question. Share your understanding of your classmate’s posting in your words. Offer and support an opinion with peer-reviewed sources or industry best practices.

Expand on your classmate’s posting by providing constructive feedback. Keep in mind that you’re expected to engage critically and not editorially (this is important to remember when we’re discussing “hot” or controversial topics). Work to demonstrate your understanding of the material from this module and, where necessary, include your sources, formatted and cited in accordance with APA style, according to the CSU Global Writing Center (Links to an external site.).