The Allowance for Doubtful Accounts

Activity:

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

  1. 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.
  2. Complete the test review for unit test :
  3. Download (PDF, 609KB)