Question: Compare and contrast the Direct Write- Off method and the Allowance method of accounting for bad debts of a company, including recording of bad debit

Compare and contrast the Direct Write- Off method and the Allowance method of accounting for bad debts of a company, including recording of bad debit expense, write- offs, and reinstatements. How is bad debts expense calculated under each? Which one is required by GAAP? For the one that is not, why does it violate GAAP?

Compare and contrast Percentage of Sales and Analysis of Receivables method of estimating bad debit expense.

What is net realization value?

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