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Question:
1. Read the paragraph in the summary titled “Reasons for Issuing this Statement.” What is cited as the primary reason behind the issuance of this accounting standard?
2. Read paragraph 19. If a firm, in the normal course of business, revises its estimate of bad debt expense from one year to the next, should the firm provide pro forma information so that users will be able to tell what bad debt expense would have been if prior estimates had been used?
3. Read paragraph 22. What is the one instance in which a change in the estimate of uncollectible accounts would be required to be disclosed?
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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