When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
However, in the direct writeoff method, estimates of uncollectible receivables are posted directly into the accounts receivable and not into the allowance account.
The amount in the accounts receivable before write off
= $150,000 - $83,000
Amount written of is $20,000, this will be posted as a debit to bad debt expense and a credit to accounts receivable.
A positioning strategy should focus on solidifying brand identity. Therefore, the ideal is for the brand to seek positioning based on the perception of its potential consumer, strengthening the benefits, quality, price and applications added to the product that sets it apart from competitors. In this strategy it is not effective to want to reach many markets at the same time, but to delimit your target market and thereby achieve competitiveness gains and influence that the product or brand has for your customer.
Consider the following calculations
Let X be Bagels and Y be croissants
Critical points are
(0,1400) , (800,600) , (1100,0)
Max at 0,1400 and P =4200
Calculation for Waltham Distribution should records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2012, the loss that Ryan should recognize (Under US GAAP) is
Using this formula
lower-of-cost-or-market rule Loss=Inventory- Current replacement cost
Let plug in the formula
lower-of-cost-or-market rule Loss= $200,000 – $190,000
lower-of-cost-or-market rule Loss= $10,000
Therefore Waltham Distribution should records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2012, the loss that Ryan should recognize (Under US GAAP) is $10,000