Question: Why is the direct write-off method not GAAP?

Why is the direct write-off method not GAAP?

Step by Step Solution

★★★★★

3.45 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The direct writeoff method is not Generally Accepta... View full answer

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

Document Format (1 attachment)

Word file Icon

145-B-A-C-R (1243).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Why isn't the direct write off method of uncollectible accounts receivable the preferred method?

Q:

Why is the direct write-off method not GAAP?

Q:

Why is the direct labor cost category eliminated in many just-in-time environments?

Q:

Limitations of internal control include: A. Human error. B. Human fraud. C. Cost-benefit standard. D. All of these answers are correct A. Human error. B. Human fraud. C. Cost-benefit standard. D. All...

Q:

1. Which of the following statements is true of the direct write-off method? A) GAAP requires public companies to follow the direct write-off method. B) It provides better matching of revenues with...

Q:

31) A receivable occurs when a business_ A) loans money to another party B) sells goods or services to another party on account C) has a monetary claim against a business or individual D) All of the...

Q:

Assume on December 31, ABC Incs unadjusted trial balance included the following items: Accounts Receivable Debit balance $107,250; Allowance for Doubtful Accounts Credit balance $1,900. What amount...

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:

34) 34) Better Deals, Inc. has 6 units in inventory on December 31. The units were purchased in November for $165 each. The price lists from the suppliers indicate that the same items would now cost...

Q:

Receivables Company Due: October 23, 2019 Direct Write-off Method - not GAAP Allowance Method (GAAP/Income Statement Method/Balance Sheet Method) EOP Adjusting Entry: Write-off of specific account:...

Q:

On September 26, the spot price of wheat was $3.5225 per bushel and the price of a December wheat futures was $3.64 per bushel. The interest forgone on money tied up in a bushel until expiration is...

Q:

Mia would like to purchase a specific home and knows that she can afford the home, but her income is slightly lower than the amount needed to qualify for the mortgage. She is a waitress and makes...

Q:

18.1 What are five forms that money has taken historically?

Q:

12.38 The continuity correction. One reason why the Nor mal approximation may fail to give accurate estimates of bi nomial probabilities is that the binomial distributions are dis crete and the...

Q:

COST IDENTIFICATION Following is a list of cost items described in the chapter as well as a list of brief descriptive settings for each item. Cost terms: a. Opportunity cost b. Period cost c. Product...

Q:

COST OF GOODS MANUFACTURED, INCOME STATEMENT W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods...

Q:

COST DEFINITIONS Luisa Giovanni is a student at New York University. To help pay her way through college, Luisa started a dog walking service. She has 12 client dogs6 are walked on the first shift...

Q:

the paulson company year end balance sheet is shown below. It's cost of common equity is 18%, it's before tax cost of debt is 12%, and it's marginal tax rate is 40%. Assume that the firms long term...

Q:

Question 3 [12 marks]: State with proper reasoning whether the following statements are TRUE or FALSE. 1. Suppose f(n)=n(1sinn) (defined over non-negative reals). Then f(n)/O(n). 2. Suppose...

Q:

If you can provide some explanation to the calculation (finance calculator if possible). It would be appreciated. Before Mrs. Smith arrives, you study her account file and notice she has different...