accounting receivables valuation

timer Asked: Aug 30th, 2014
account_balance_wallet $5

Question Description

Discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing off accounts. take a position on whether or not estimating the allowance for doubtful accounts distorts gross income. 

Tutor Answer

School: University of Maryland

100% original and plagiarism free as always:



·  Simple accounting entries are entered in books of accounts.

·  It takes less time to make an adjustment after this. 


·  Chances of committing errors are more causing material misstatements.

·  This is against matching principles.

·  Profit amount can be overstated easily.

Estimation of provision for doubtful debts contains careful procedures to calculate amount, hence this cannot distort gross income figure. 

Please rate me. thanks in advance :)

flag Report DMCA

awesome work thanks

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors