Percentage of receivables method

Assignment Help Accounting Basics
Reference no: EM13151384

Why would you select the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method?

Is it appropriate to utilize a hybrid of the percentage of sales and the percentage of receivables methods of calculating the allowance for doubtful accounts? Why?

Does GAAP allow for the utilization of both methods at the same time? Why?

Include any information from the financial statement used in DQ-1 about percentage of sales or percentage of receivables method.

Reference no: EM13151384

Questions Cloud

Annual costs are technology : If I sell 22,000 units and my annual costs are technology=$5000, postage & handling=$1000, Misc=$3000, inventory=$2000, equipment=$4000, and overhead=$1000. What would my monthly costs be if my fixed costs are technology, equipment, and overhead.
Determine which transfer pricing methods : In each of the following independent situations involving transfers of tangible property, determine which transfer pricing methods applies and compute a transfer price using the appropriate method. Show all of your computations.
League with two teams : Consider a league with two teams that might engage in doping. If neither team engages in doping, the odds that Team A will win the league championship are 65% and the odds that
What would be the volume of solid brick : A solid brick of dry ice (CO2) weighs 0.75 kg. Once the brick has fully sublimated into CO2 gas, what would be the volume of solid brick at STP.
Percentage of receivables method : Why would you select the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method?
Change in accounting principle concept : Which of the following is not treated as a change in accounting principle? A) A change from LIFO to FIFO for inventory valuation B) A change to a different method of depreciation for plant assets
Mercedes truck should be replaced : The company you work for asks you to recommend whether their Mercedes truck should be replaced now or kept in service for an additional 10 years.
Range and standard deviation of checking account balances : Determine the range and the standard deviation of the checking account balances. What do the first and third quartiles show?
Calculate the initial and the final ph : For 220.0 mL of a buffer solution that is 0.205 M HCHO2 and 0.295 M KCHO2, calculate the initial and the final pH after adding 0.010 mol of NaOH.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accumulated depreciation account

Do you think it is necessary to use an accumulated depreciation account instead of just adjusting the asset account directly?

  Share of the subsidary income computation

The parent company acquires all of a subsidary's common stock but only 70 percent of its preferred shares. This preferred stock pays a 7 percent annual cumulative dividend. No dividends are in arrears at the current time. How is the noncontrolling..

  Construct the stockholders equity section

Sands Corporation has the following capital structure at the beginning of the year 2007: Construct the stockholders' equity section incorporating all the above information.

  Concept of unit contribution margin

If fixed costs are $700.000 and the unit contribution margin is $14, what amount of units must be sold in order to realize an operating income of $100.000

  Determine the amounts that should be debited to land

Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation.

  Pofessional code of conduct aicpa

What are the 6 principles in the AICPA's CPC and the purpose of each principle?

  Evaluating earnings quality

Which one is not a main question when you evaluate earnings' quality?

  How many brackets should jasper produce

Finished goods inventory at the end of last December was 200 units. Ending finished goods inventory is equal to 25 percent of the next month's sales. Jasper Company expects to sell the brackets for $45 each. How many brackets should Jasper produce..

  Cash receipts from all current and prior credit sales

Projected sales for December, January, and February are $60,000, $85,000 and $95,000, respectively. The February expected cash receipts from all current and prior credit sales is ?

  Opportunity cost of purchase of land

A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:

  Problem related to early retirement from company

John Roberts is 55 years old and has been asked to accept early retirement from his company. The company has offered John three alternative compensation packages to induce John to retire:

  Partnership earned net income

O. Guillen (beginning capital, $69,000) and K.Williams (beginning capital ($82,000) are partners. During 2008, the partnership earned net income of $71,400, and Guillen made drawings of $18,700 while Williams made drawings of $32,200.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd