Explain the direct charge-off method for recording uncollectible accounts expense.
Question:
Explain the direct charge-off method for recording uncollectible accounts expense.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (9 reviews)
Introduction There are two methods used to record uncollectable accounts expense ie the allowance method and direct charge off method Here we are concerned about direct charge off method Direct charge off method The direct charge off method is also known by specific charge off method Under this method the losses from uncollectable accounts are record only when a particular customer account is uncollectable Under this method the accounts receivable will be removed from accounts receivable and charge to uncollectable account ...View the full answer
Answered By
Aswan S
Mechanical engineer
Subject matter expert of Mathematics , Physics and engineering solutions
0.00
0 Reviews
10+ Question Solved
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
Question Posted:
Students also viewed these Business questions
-
Discuss the differences between the allowance method and the direct write-off method for recording uncollectible accounts. Which of the two is acceptable under financial accounting rules?
-
Delores Cooper operates Cooper Garden Designs. Most of her customers pay cash so she uses the direct write-off method to account for uncollectible accounts receivable. On May 3, 2014, she determined...
-
1. Why would managers use the allowance method for recording uncollectible accounts instead of the direct charge-off method? 2. Should the sales department be given final authority for approving...
-
For 32 hours of work, you are paid $241.60. How much would you receive for 37 hours?
-
Eastern National Bank installed a wireless encryption device in January 2015. The device cost $120,000. At the time the device was installed, Eastern estimated that it would have an expected life of...
-
Consider a day when the Dow Jones industrial average went up 149.82 points. The following table shows the stock price changes for a sample of 12 companies on that day. a. Compute the sample variance...
-
The flowrate between tank \(A\) and tank \(B\) shown in Fig. P8.115 is to be increased by \(30 \%\) (i.e., from \(Q\) to \(1.30 Q\) ) by the addition of a second pipe (indicated by the dotted lines)...
-
The SEC took action against Gateway Computer in 2001 because they believed that Gateway systematically understated their allowance for doubtful accounts to meet sales and earnings targets. This is...
-
3) Determine the magnitude of the moment of the force F about a) the x-axis, b) the y-axis, and c) the z-axes. 3 ft 4 ft 2 ft C B F= {41+ 12j3k}lb
-
The Archives of Pediatrics and Adolescent Medicine (Dec. 2007) conducted a study of 105 ill children to determine if honey was a remedy for coughing. The children were randomly divided into groups....
-
How is Allowance for Doubtful Accounts shown in the balance sheet?
-
For each of the following cases, respond to the question asked and indicate the accounting principle or concept that applies. 1. Baxter Company charges off the cost of all magazine advertising in the...
-
Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawnmower has a total cost of $ 230 per unit, of which $ 160 is product cost and $ 70 is selling and...
-
Research and provide 3 different resources to the class that vary by needs, locations and circumstances. In other words don't provide 3 resources that all address the same is sure that are all only...
-
Balance sheet ending December 31 for years 2017 and 2018 Assets: Cash Short Term Investments Accounts Receivable Inventories Net Plant and Equipment Liabilities: Notes Payable Accounts Payable...
-
If a firm's Net Operating Profit after Tax (NOPAT) is $300,000. Total operating capital is $2,000,000. The after-tax cost of capital is 10%, what is the firm's economic profit?
-
Suppose that the distance a car travels varies directly with the amount of gasoline it uses. A certain car uses 14 gallons of gasoline to travel 448 miles. How many miles can the car travel if it has...
-
a. Compute the 10 first samples of its impulse response. b. Find the input-output relation. c. Apply the input z(n) = {1,1,1,...} and compute the first 10 samples of the output. d. Compute the first...
-
A shareholder receives appreciated noncash property from his corporation and assumes a liability attached to the property. How does the assumption affect the amount of dividend he reports in gross...
-
Place a tick in the appropriate grid to identify the balance that would be brought down in each of the following named accounts, in the books of Rizwy Mohamed: (a) In the Cash account: if Rizwy...
-
What is the difference between a dissolution and liquidation?
-
What are typical considerations that affect the way income is allocated among partners?
-
List the steps required to dissolve a partnership.
-
Differentiate between a scalar value and a vector value.
-
Now that the supplier of the nori has been chosen and the transportation method selected, you turn your attention to the downstream side of the supply chain -- the marketing (distribution) channels....
-
Mandy Murphy, owner of Murphy and Co. (Saint John, New Brunswick), gave the following list of assets and liabilities to a public accountant and asked him to prepare a balance sheet for the company as...
Study smarter with the SolutionInn App