Jun 2nd, 2015
Studypool Tutor
Price: $10 USD

Tutor description


Word Count: 592
Showing Page: 1/3
Learning Team Reflection- Week 2Companies must estimate the amount of doubtful accounts used in an accounting period. There are two different ways a company estimate the amounts by either using the percentage of sales or percentage of receivables methods. Each method meets the standards of GAAP. It just depends whether the company wants to emphasize the balance sheet or income statement. The percentage of sales method is calculated by an estimate based on past financial reporting periods. A company selects percentage of use and multiplies by net sales. The amount calculated is an adjusting entry that debits bad debt expense and credits allowance for doubtful accounts. The percentage of receivable methods is calculated from the amount of receivable that will be uncollected. The company prepares an aging schedule focusing on the debts that have aged. The compan

Review from student

Studypool Student
" Thanks for the help. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

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