Asked by Erika Nations on Jun 13, 2024
Verified
This method is most often used by small companies with few receivables.
A) Direct write-off method
B) Aging of receivables method
C) Percent of sales method
D) Allowance method
Small Companies
Businesses with a relatively small market share or workforce, often defined by specific criteria such as revenue, assets, or number of employees.
Receivables
Money owed to a company by its customers or clients for goods or services that have been delivered but not yet paid for.
Direct Write-off Method
An accounting method where uncollectible accounts receivable are directly written off against income at the time they are considered unrecoverable.
- Determine and utilize schemes for appraising the value of bad debts.
- Master the processes and repercussions of the aging method and direct write-off method for logging bad debts.
Verified Answer
Learning Objectives
- Determine and utilize schemes for appraising the value of bad debts.
- Master the processes and repercussions of the aging method and direct write-off method for logging bad debts.
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