NVCC Direct Write Off Technique Accounting Essay

User Generated

npban

Business Finance

Northern Virginia Community College

Description

Lets talk about the differences between the Direct method of writing off receivables and the allowance method of writing them off. Why would you use one instead of the other.


Someone else - what kind of account is "allowance for doubtful accounts".

Someone else - Tell us about aging of receivables. Why would we age them?

Someone else - What method are we using when we estimate bad debts?

Someone else - what are the two methods of estimating bad debts? Which is easier for you to remember and why?

Someone else - If you were focusing on your income statement (matching expenses to revenues), which method of estimating would you use?

Explanation & Answer:
2 pages
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Explanation & Answer

Please check the attached files. One is the answer, the outline and the plagiarism report. Please check and ask me any questions.

Running head: ACCOUNTING

1

Accounting
Student’s Name
Institution

ACCOUNTING


The direct write-off technique and allowance technique



Best method to apply.



Allowance for doubtful accounts



Receivable aging



There are two methods for estimating bad debts.



When focusing on my income statement



Reference

2


Running head: ACCOUNTING

1

Accounting
Student’s Name
Institution

ACCOUNTING

2

The direct write-off technique is applied when deciding a client will ...


Anonymous
Very useful material for studying!

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