The Allowance for Doubtful Accounts
1.Work on the Test Review and Problem Set
2. Please ensure you have read all of Chapter 8 and reviewed the % of receivables method for recording bad debt expense
- Complete BE8-5 & BE8-6 in teams of 4. The CEO has come to the accounting department and wants to know if the company should be using the % of sales OR the % of receivables method of recording bad debt expense. In addition, she wants to know why you don’t just write the accounts off when you realize they are un-collectable. Be prepared to present your response to the class explaining which financial statement(s) are best served by the method you have selected.
- Complete the test review for unit test :