What are some different methods that can be used for customer returns/bad debt?

Q: Percentage of Net Sales and Accounts Receivable Aging Method.   Requirements:

A: Bad debts refer to the amount that is owed from some another person or is to be received from…

Q: Explain in details the accounts receivables and bad debts?

A: Company is carrying the sales activity after performing the cost ascertainment method. In order to…

Q: What are some factors to consider in evaluating a company's ability to make payments on outstanding…

A: Company's ability to make payments on outstanding debt 1. Free Cash Flow:- cash inflow during the…

Q: Which of the following methods may not be appropiate for estimating bad debt expense? a. Percentage…

A: The bad debt expense is created for the debtors which company finds that would not make the full…

Q: Explain balance sheet approach for estimating bad debts.

A:

Q: What is off-balance-sheet financing? Why might a companybe interested in using off-balance-sheet…

A:

Q: Can you explain briefly the difference between the accounting for receivables allowance methods for…

A: The percentage-of-sales approach calculates doubtful debt accounts based on a term's credit sales.…

Q: Which of the following methods may not be appropiate for estimating bad debt expense? a. percentage…

A: Bad debt expense means those accounts receivables that can not be collected. It depends on the…

Q: Vhich method of estimating bad debts focuses on Ba tatement? percentage of sales approach ageing of…

A: Bad debt expense is the estimation of occurrence of a liability based on uncollectible accounts…

Q: What happens if companies use the direct write-off method in accounting for bad debts? What will be…

A: Direct write off method: The company which makes credit sales would undergo not receiving payment…

Q: Define bad debt expense.

A: Definition:   Expenses: Expenses are costs incurred for the operations of a business. The costs…

Q: How does the percent-of-sales method compute bad debts expense?

A: In percent of sales method, bad debt expenses are computed as a predetermined percentage of credit…

Q: pense and accounts receivable balance. Under different circumstances, another method is used called…

A: When there is only one large accounts receivable due from one client the direct write off method if…

Q: How do lenders’ and borrowers’ requirements differ? How can financial intermediaries bridge the gap…

A: Lenders' requirements: The minimization of risk This includes the minimization of the risk of…

Q: Why debtors control account may have credit balance

A: DEBTOR CONTROL ACCOUNT- IT REFLECTS THE TOTAL AMOUNT OWNED BY ALL THE INDIVIDUAL DEBTORS. THE…

Q: How does collection policy influence sales and the bad debt expenses

A: Solution Note : Dear students as per the Q&A guidelines we are required to answer the first…

Q: What are the problems encountered by the financial system? What is/ are assessment to these…

A: The group of institutions like banks, insurance companies, mutual funds, stock exchanges, etc. that…

Q: Why is it important to check if debt is decreasing if we have decline in interest expense in…

A: The cost of borrowing funds is referred to as interest expenditure. It is the fee charged by a…

Q: The estimate of a bad debt expense may be based on the historical relationship between actual bad…

A: Loss from uncollectible accounts means where goods has been sold on credit and amount has not been…

Q: What effect does collection policy have on sales, collection time, and bad-debt loss percentage

A: The company's collection policy is defined as the strategies or processes it employs to collect past…

Q: What are some of the ways to estimate bad debts?

A: There are 2 basic methods namely 1. Percentage of sales method 2. Percentage of receivable method…

Q: why are accounts receivables inevitable? what advantage do selling on account offer?

A: The amount of money owing to a corporation by customers for goods or services previously provided is…

Q: Discuss the best reason(s) for using the allowance method and give some examples of companies that…

A: The reasons for using the Allowance method are discussed hereunder : There are two methods to…

Q: Must bad debt expense be reported on its own line on the income statement? If not, how should it be…

A: Bad debts expense: The amounts of loss incurred from extending credit in the customer’s account are…

Q: In accounting for bad debts, how do the income statement approach and the balance sheet approach…

A: A company made credit sales to its customers. The mount which is not received from customers is…

Q: When is it acceptable to use the uncollectible accounts? O when the expected bad debts are…

A: Solution: Direct write method is the method of recorded bad debts expense when actual bad debts…

Q: Why does the direct write-off method of accounting for bad debts usually fail to match revenues and…

A: Direct write-off method does not make allowance or estimation for uncollectible accounts, instead…

Q: With credit tranching, the subordinated tranches may absorb credit losses as they occur.   Select…

A: Credit Tranching:- It is a system which is generally used by the international monetary funds. under…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: When is bad debts expense recorded when using the direct write-off method?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Desceibe income statement approach for estimating bad debts.

A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…

Q: Explain how the accounting for bad debts can be used for earnings management.

A: Bad Debts:   Bad debts refer to the loss of a company, It occurs when a company sold goods or…

Q: When using the allowance method for accounting for bad debts, accounts receivable is reported on the…

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: What will the company record for bad debt expense?

A:

Q: What are bad debts?

A: Debts that a company or person is unable to be likely to recover are known as doubtful debts.…

Q: Which among the statements is not correct?  a. Net realizable value of accounts receivable results…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

Q: world, explain whether a current account deficit might be seen as a problem?

A: A current account deficit may imply the economy is becoming uncompetitive and the conversion scale…

Q: What is proovision for bad debts

A: Bad debt means the amount due from debtor but it become bad i.e. it is not possible to recover the…

Q: What are the difficulties associated with the financial system and how these challenges can be…

A: Financial system is undergoing a significant change with the advancement of technology. It has…

Q: Briefly explain the difference between the income statement approach and the balance sheet approach…

A:

Q: When a large account receivable balance is due from one client it is logical to use the direct…

A: Accounts receivable (AR) is the sum owed to a business for goods or services delivered or used but…