13. When the estimate used for bad debt expense is changed, bad debt expense for all past periods must be recalculated. there is no change in the amount of bad debt expense recorded for future years. bad debt expense for current and future years is affected. The company must change its write-off policy as well. 14. Which of the following methods of determining bad debt expense does not generally (assuming materiality) provide a level of matching of expense and revenue that is acceptable following GAAP? Debiting bad debt expense with a percentage of sales under the allowance method. Debiting bad debt expense as accounts are written off as uncollectible. Debiting bad debt expense with an amount derived from aging accounts receivable under the allowance method. Debiting bad debt expense with a percentage of accounts receivable under the allowance method.
13. When the estimate used for bad debt expense is changed, bad debt expense for all past periods must be recalculated. there is no change in the amount of bad debt expense recorded for future years. bad debt expense for current and future years is affected. The company must change its write-off policy as well. 14. Which of the following methods of determining bad debt expense does not generally (assuming materiality) provide a level of matching of expense and revenue that is acceptable following GAAP? Debiting bad debt expense with a percentage of sales under the allowance method. Debiting bad debt expense as accounts are written off as uncollectible. Debiting bad debt expense with an amount derived from aging accounts receivable under the allowance method. Debiting bad debt expense with a percentage of accounts receivable under the allowance method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:13. When the estimate used for bad debt expense is changed,
bad debt expense for all past periods must be recalculated.
there is no change in the amount of bad debt expense recorded for future years.
bad debt expense for current and future years is affected.
The company must change its write-off policy as well.
14. Which of the following methods of determining bad debt expense does not generally (assuming
materiality) provide a level of matching of expense and revenue that is acceptable following
GAAP?
Debiting bad debt expense with a percentage of sales under the allowance method.
Debiting bad debt expense as accounts are written off as uncollectible.
Debiting bad debt expense with an amount derived from aging accounts receivable under
the allowance method.
Debiting bad debt expense with a percentage of accounts receivable under the allowance
method.
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