1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Finger [1]
1 year ago
15

question content area the direct write-off method of accounting for uncollectible accounts a.is often used by small companies an

d companies with few receivables b.emphasizes cash realizable value c.emphasizes the matching of expenses with revenues d.emphasizes balance sheet relationships
Business
1 answer:
Ludmilka [50]1 year ago
3 0

The direct write-off method involves writing off a bad debt expense directly against the corresponding receivable account.

What is direct write-off method?

Bad debts can be accounted for in one of two ways: directly or indirectly. Bad debts are only recorded once it is determined that they cannot be recovered. In other words, when it is established beyond a reasonable doubt that the debt cannot be collected, a business will merely declare the bad debt charge and reduce its accounts receivable.

Due to the fact that the direct write-off method frequently records bad debt in a period other than the period in which the transaction was recorded. As a result, it frequently fails to align costs with income.

Many small businesses employ the direct write-off approach, which doesn't call for audited financial records, to record uncollectible accounts.

To know more about direct write-off method refer:

brainly.com/question/15733967

#SPJ4

You might be interested in
The Argentine government has recently been imposing heavy trade restrictions. Taxes on exports are a major source of revenue for
kati45 [8]

Answer:

The correct option is "B"

Explanation:

The burden substantial exchange limitation by The Argentine government cause to upset exchange and influences imports Due to prohibitive arrangement exchange it builds the expense of bringing in products and causing to diminish in supply in Argentinean advertise Before the exchange limitations, the market was working effectively, and was overwhelmed with imported merchandise because of the exchange limitations, import merchandise decays because of increment in cost.

3 0
3 years ago
Read 2 more answers
Over a long period of time Sears has slipped from being America's largest retailer to struggling for survival in recent years. W
Kaylis [27]

Answer:

I think Sears need to stop diversifying its product too much and focus on improving internal human resources.

Explanation:

The largest expense that Sears made occurred during their effort to add more female customers to shop at their place.

Sears was known for  its DieHard, Craftsman and Kenmore brands that attract mostly male customers to their stores. They started “The Softer Side of Sears”  which focused on adding more products for female customers.

But, in the process of doing so, Sears neglected their already successful male products department with a lot of employees who sacrifice a lot of their time and effort into making Sears as big as it is.

In order to restore to its former glory, Sears need to stop focusing on new market with a lot of strong competitors and focused on improving skill set of employees in their successful department. They can do this by investing in their education, increasing the budget for their research and development, etc.

4 0
4 years ago
In July, Lane Co. sells merchandise to Avery Co. on account. In August, Avery pays the balance in full. The entry that Lane will
grandymaker [24]

The entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.

<h3>What is Accounts Receivable?</h3>

Accounts Receivable can be defined as the amount a company is expected to receive from their clients or customers for the goods and service they rendered to their clients.

Based on the information given the appropriate journal entry to record the transactions is:

Debit Cash

Credit Account receivable

(To record the receipt of cash)

Inconclusion the entry that Lane will make to record the receipt of cash will include a credit to the: a. Accounts Receivable.

Learn more about account receivable here:brainly.com/question/24848903

7 0
2 years ago
Pacific Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-ca
777dan777 [17]

Answer:

Explanation:

Total asset turnover = Sales/total assets

3.2= 14000000/Total assets

Total assets = 4375000

E/A = 1-D/A = 1-0.45 = 0.55

Equity = E/A*assets = 0.55*4375000=2406250

Net income = (EBIT-interest)*(1-tax rate)

=(1344000-546000)*(1-0.25)=598500

ROE = Net income/total equity

ROE% = 598500/2406250=0.248

ROE% = 24.8

6 0
3 years ago
Assume Metro Company had a net income of​ $2,100 for the year ending December 2018. Its beginning and ending total assets were​
Sever21 [200]

Answer:

7.92%

Explanation:

The computation of the return on total assets is shown below:

Return on assets = (Net income) ÷ (average of total assets)

where,  

Net income is $2,100

Average total assets = (Beginning total assets + ending total assets) ÷ 2

= ($33,500 + $19,500) ÷ 2

= $26,500

Now put these values to the above formula  

So, the ratio would equal to

= $2,100 ÷ $26,500

= 7.92%

7 0
4 years ago
Other questions:
  • If I start Djing live for crowds and private places, what should i charge per hour?
    15·2 answers
  • In the 1950s, imports and exports of goods and services constituted roughly 4% to 5% of U.S. GDP. In recent years, exports have
    14·1 answer
  • You only have $10 to spend for the week. You decide to spend $8 on a movie instead of buying an $8 pizza. a. What is the scarce
    14·1 answer
  • Three Waters Co. is a small company and is considering a project that will require $700,000 in assets. The project will be finan
    14·2 answers
  • A recent study shows the benefits of using public transportation. Government officials have hired your consulting firm to increa
    14·1 answer
  • Charismatic leadership is now considered part of ______ leadership.
    12·1 answer
  • Economists measure the personal satisfaction someone gets from consuming goods and services with the concept of
    13·1 answer
  • Frito-Lay has developed a new line of snack foods. The company wants to place the products in as many outlets as possible; groce
    6·1 answer
  • The following items are components of a traditional Balance Sheet. How much are the total assets of the firm?
    13·1 answer
  • For the year ended December 31, a company has revenues of $332,000 and expenses of $203,500. The company paid $56,000 in dividen
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!