Question: When a debt ( trade recivables ) is treated as being bad, in accounting, we treat the sale as having not existed in the first

When a debt ( trade recivables) is treated as being bad, in accounting, we treat the sale as having not existed in the first place. Thus, we reduce the slaes revenue figure by the value of the revenue concerend and reduce the trade recivables by a smiliar amont. This provides a logical and informative View of events.

( comment on This statement)

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!

Assignment M&F Accounting Managerial and Financial Accounting Assignment You must answer all questions: 1. Explain any four stakeholders groups and make brief notes what financial information each...

Question 2 Comment critically on each of the following statements that you have recently overheard: (a) When a companys shares are traded on the Stock Exchange and the current market price is above...

currency) will play a dominant role in the world and will - possibly - replace some previously established businesses (if not the whole markets). But - to achieve such a supremacy - changes are...

Hi, I've talked to you earlier that you know the answers for the Enron case. Is it possible to get this done by afternoon of Wednesday at best. If not I'm also willing to take this on a Friday....

I'm willing to take this before the 19th of may. PROFESSIONAL ISSUES When a company looks too good to be true, it usually is. ; i - I The Rise and Fall of Enron BY C. WILLIAM THOMAS f you''re like...

Do the reading assignment and then look up KRS 275.520 and read its text.Then answer the questions below. Fully explain your answers: 1.What is the taxation advantage of a LLC as opposed to a...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Intermediate Financial Accouting, i really dont understand please help me The following details are decmed relevant to the propuratied of the diraft fiesancial statements which are is be presered ae...

Spend analysis Stock-keeping unit (SKU) 10 Three-way match Utilization ty Images; @ monsity/ Getty Images Vendor master health care? iency? CHAPTER 17 applied, and what are the steps to fol-...

M4 Assignment: Leadership Behavior You have been hired by Doris Ann Riley, the head of HR for King Conductors to analyze a management/leadership situation. She is concerned with what she is hearing...

How peter handles these situations? Peter is a real estate developer. He develops residential apartment complexes in the Wollongong local area. He purchases a large block of land for $2 million and...

Compute the value of C for the diagram, assuming a 10% interest rate. 300 200 100

19. What are the general rules for measuring a gain or a loss by a debtor in a debt extinguishment?

Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of $18,300, $34,500, and $52,300, respectively. Project B has annual...

Wan Yu Tang purchased a cell phone plan from Endless Journey Wireless. His first monthly invoice for service totaled $65, which included a $15 roaming charge.Without understanding the meaning of a...

You are the owner of Jimmys Electric, a small electrical construction company. Because of reduction of building in the area, it is necessary that you terminate Milton Youngs employment. He is an...

Wallenda Jorgenson is in the real estate market to buy a home. She has been attending open houses on her own and has found a house that she wants to buy. She has asked Daniel Thompson,a real estate...