Question: how does the allowance method work? How do we determine the adjustment and how do we then write off accounts during the next year? Why

how does the allowance method work?

How do we determine the adjustment and how do we then write off accounts during the next year?

Why do we use the allowance method rather than the direct write off method we use in tax?

What are the impacts on the financial statements as we account for bad debts using the allowance method?

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The allowance method for accounting for bad debts works as follows 1 Determining the Adjustment At the end of each accounting period a company estimat... View full answer

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