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2 years ago

The two methods of accounting for uncollectible receivables are the direct method and the __________ method.

Business

1 answer:

Rudiy272 years ago

6 0

The two methods of accounting for uncollectible receivables are the direct method and the allowance method.

The Financial Accounting Reserve Method refers to the bad debt process in which the estimated bad debt expense is recorded in the same accounting period as the sale. The provisioning method is used to adjust the value of accounts receivable shown on the balance sheet.

The direct depreciation method requires two separate postings to write off the irrecoverable account. Recognizing credit losses using the provisioning method reduces journal entries for recognizing certain charge-offs. Doubtful invoice deductions.

Under the allowance method, companies estimate the number of bad debts as a percentage of credit sales. Then apply that percentage to your credit sales when you get your revenue. Value adjustments correspond to income.

Disclaimer: Learn more about the allowance method here

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3 years ago

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Answer:

Answer is explained in the explanation section.

Explanation:

Solution:

Data Given:

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Dear Student,

I trust that this meets you well.

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Kindly provide the same as soon as you can.

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