Question: The allowance method is preferred over the direct write - off method of accounting for bad debts because Select answer from the options below it

The allowance method is preferred over the direct write-off method of accounting for bad debts because
Select answer from the options below
it states receivables at their net realizable value on the balance sheet.
it allows for a larger bad debts expense.
it allows for greater tax benefits.
it allows for a smaller bad debt expense.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

ANSWER THE FOLLOWING QUESTIONS: What is the theoretical justification of the allowance method as contrasted with the direct write off method of accounting for bad debts? Indicate how the...

Q:

ANSWER THE FOLLOWING QUESTIONS: What is the theoretical justification of the allowance method as contrasted with the direct write off method of accounting for bad debts? Indicate how the...

Q:

please give ans 30 minit (a) Allowance method is more appropriate than direct write off method of accounting for bad debt." Do agree? Explain your answer. [3marks] (b) The ledger of XYZ Company at...

Q:

UTS: Accounting for Business Decisions A 20 MC questions: The primary purpose of the closing entries is to: assure that adjusting entries balance b. calculate the net balance of non-current assets...

Q:

Question 6 25 pts Answer the following as true o tab then select the correct responding-choice #ta company is being their bad debt expense on an ang schedule of accounts rechtle they using the income...

Q:

PLEASE ANSWER ALL THE QUESTIONS OR I WILL MARK AS INCOMPLETE 40. When using the allowance method of accounting for uncollectible accounts, the entry to record the estimated bad debts expense is a...

Q:

31. Riverboat Adventures pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $35,000, a building appraised at $105,000, and paddleboats...

Q:

Cityguard Security Services Pty Ltd is a provider of security services for the commercial and business sector. Commercial premises and buildings throughout Australia engage Cityguard Security...

Q:

Uns receivable on its December (percent-of-receivables) and reporting receivables on the balance sheet Requirements 1. Journalize Hilltop's transactions that occurred during 2018. The company uses...

Q:

5-6 please !! 4-5 4. Which of the following statements is incorrect? a. The allowance method is preferred over the direct write-off method of accounting for bad debts because matching of bad debt...

Q:

Acetone, C 3 H 6 ), is the main ingredient of nail polish remover. A solution is made up by adding 35.0 ml of acetone (d=0.790g/ml) to 50.0ml of ethyl alcohol, C 2 H 5 OH (d=0.789 g/ml). Assuming...

Q:

3.A 6.5 -kg block of ice is placed on a concrete floor which has a constant temperature of 25.5 C. The ice melts as it absorbs 2.09 x 106 J of heat. What is the change in entropy of the ice ? b. of...

Q:

P6.1 (LO 1) (Determine Proper Cash Balance) Francis Equipment AG closes its books regularly on December 31, but at the end of 2025 it held its cash account open so that a more favorable statement of...

Q:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...