Transaction Classification Accounting treatment. 

1. At the end of the year, Quo determined that the allowance for credit losses should be 4% of the accounts receivable balance. The allowance in the previous year was 3.6%. 

2. Quo determined that manufacturing equipment previously depreciated under an accelerated method should be depreciated under the straight-line method. 

3. Quo presented consolidated statements for the first time. 

4. Quo properly changed from LIFO to FIFO to account for its work-in-process inventory. 

5. Quo properly changed from weighted-average cost to the specific identification method to account for its finished goods inventory.

Answer rating: 100% (QA)

Heres the classification and accounting treatment for each transaction 1 Increased Allowance for Credit Losses Classification Accrual Accounting Treat... View the full answer