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bearhunter [10]
3 years ago
13

Two methods of accounting for uncollectible accounts are the

Business
2 answers:
ycow [4]3 years ago
8 0

Answer:

The correct answer is B: direct write-off method and the accrual method

Explanation:

Unfortunately, some sales on account may not be collected. Customers go broke, become unhappy and refuse to pay, or may generally lack the ethics to complete their half of the bargain. It is necessary to establish an accounting process for measuring and reporting these uncollectible items. Uncollectible accounts are frequently called “bad debts.”

There are two methods of accounting to manage uncollectable accounts:

1- Allowance method

2- Direct Write-off Method

2- Under this method, there is no allowance account. An account receivable is written-off directly to expense only after the account is determined to be uncollectible. This method is required for income tax purposes. The direct write-off method is easy to operate as it only requires that specific debts are written off as they are identified with a simple journal. The problem with the method, however, is that it does not comply with the matching principle, in that revenue might be recorded in one period, when the customer is invoiced, whereas the expense of writing off the uncollectible amount is recorded in a completely different period when the amount is identified as irrecoverable.

aliya0001 [1]3 years ago
3 0

Answer:

Correct option is (d)

Explanation:

An account is termed uncollectible if they are not expected to be paid. There are two methods to write off these accounts:

1. Direct write off method: In this, the account recognized at uncollectible is directly charged to profit and loss account as an expense.

2. Allowance method: Under this method, a provision for doubtful debt is created where anticipated bad debts are charged. When an account needs to be written off, doubtful debt is debited and accounts receivables are credited.

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Veseljchak [2.6K]

Answer: The third option (option C) is the right answer.

Explanation:

The paragraph which has the best coherence is option C. This is because in the case of the third option, it explains that the flow of ideas is constant from one sentence to another.

The first sentence serves as an introduction which talked about the reasons why duties should be divided based on each member’s expertise. The sentences moved smoothly and also logically from one sentence to another sentence. An example is the sentence that “if your company does not have a public relations executive…..”. This should logically proceed the sentence that says that communication ought to be overseen by the director of PR.

This shows that the third option possesses a consistent and logical train of thought as well.

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tamaranim1 [39]

This scenario best illustrate Backward vertical integration

Explanation:

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In other terms, backward integration is where an enterprise imports another company providing the necessary goods or services for production.

For examples, an company might purchase the product or raw materials manufacturer. Businesses often complete retrograde incorporation of these other businesses or combine of them. However, they may set up their own divisions to perform this mission.

7 0
3 years ago
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blondinia [14]
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Splish Brothers Inc. issues $4.8 million, 5-year, 7% bonds at 102, with interest payable on January 1. The straight-line method
Radda [10]

Answer and Explanation:

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3 years ago
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Blizzard [7]

Answer:

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The lifestyles of Americans were significantly effected by the availability of labor saving products, luxury items and the emergence of mass advertising campaigns and consumerism.

Explanation:

3 0
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