MGMT 20000 Lecture Notes - Lecture 15: Accounts Receivable, Balance Sheet
11 Oct 2018
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Write off bad debts only at the time they actually become collectible. Unlike the allowance method, which requires estimation of uncollectible accounts. Number of times during a year the average accounts receivable balance is collected. Number of days the average accounts receivable balance is outstanding. You have just received notice that a customer of yours with an accounts. Receivable balance of ,000, has gone bankrupt and will not be making any future payments. Using the allowance method, the journal entry you make it to. Under the allowance method, when a specific amount is written off, A company, using the allowance method of recording credit losses, wrote off a customer"s account in the amount of ,000. The company reinstated the account by means of a journal entry and then recorded the collection. The direct write-off method is not an acceptable method for gaap because it fails to report:
