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.
100% original and plagiarism free as always:
Simple accounting entries are entered in books
It takes less time to make an adjustment after
Chances of committing errors are more causing
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.
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