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

Why is the direct write-off method not GAAP?

Step by Step Solution

★★★★★

3.23 Rating (186 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The direct write off method is not GAAP bec... 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

563-B-A-C-R (3157).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

What is the conceptual difference between the (1) percentage of credit sales and (2) aging methods of estimating bad debts?

Q:

A business borrows $1,000, giving a note that requires an interest rate of 12 percent per year and repayment of principal plus interest in a single payment at the end of one year. Calculate the total...

Q:

How is net sales revenue calculated?

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:

The country of Leverett is a small open economy. Suddenly, a change in world fashions makes the exports of Leverett unpopular. a. What happens in Leverett to saving, investment, net exports, the...

Q:

A brilliant chemist, Sir Nigel Worthington Price has re- cently discovered Nigelite, a radioactive isotope which loses 20.63% of the quantity present, every week. (a) If Q(t) is the amount of...

Q:

The following information about cell phones and tablet PCs was determined from the corporate records: If required, round your answers to the nearest cent. a . Determine the indirect labor cost per...

Q:

Do you agree with the decision in this case? Why or why not?

Q:

The following information was taken from Logsden Manufacturings trial balances as of December 31, 2008, and December 31, 2009. Required: Calculate the gross profit ratio and operating margin ratio...

Q:

Katie Vote owns a small business that rents computers to students at the local university for the nine month school year. Katie's typical rental contract requires the student to pay the year's rent...

Q:

Compton Audio sells MP3 players. During 2008, Compton sold 1,000 units at an average of $300 per unit. Each unit cost Compton $180. At present, Compton offers no sales discounts. Compton's controller...

Q:

Alicia (first time home buyer) is looking to buy one bed-room condo, and she needs your advice on the maximum price she can afford to offer for her condo purchase when she buys one. She plans to use...

Q:

Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: The company applies overhead at a rate of $16.00 per labor hour. It...

Q:

Mini-Exercise 3-4 (Static) Calculate average total assets, net income, ROI, and ROE LO 3-3.\ Firm M has a margin of 11% , turnover of 1.4 , sales of $840,000 , and average stockholders' equity of...