Please give real life examples and simple definitions for the following: 1. What are the methods of estimating bad debts?

Q: What do I need to do to build a solid credit history and how can I maintain it?

A: credit score history is a method to judge a customer's capability of paying his credit amount taken…

Q: What is the journal entry to record payment of bad debt?

A: When bad debts are recovered cash/bank account shall be debited and bad debts recovery account shall…

Q: The cost of marginal bad debts is found by taking the difference between the levels of bad debts…

A: Bad debt refers to the loans or amount that can no longer be recovered as the person has lost all…

Q: A good example of an alternative question is: A. “Why did you borrow the money?” B. “Will you repay…

A: An alternative question is a question that presents two or more possible answers and presupposes…

Q: Unsecured creditors: have rights to be paid amounts owed, but the rights may have to be enforced…

A: Correct option is 1. i.e unsecured creditors have rights to be paid amounts owed, but the rights may…

Q: Explain correct false parts and also true parts Most businesses will incur debt at some point…

A: The statement "Most businesses will incur debt at some point during their existence" is generally…

Q: what is the job of a financial intermediary*? What might happen if they fail to do their job? *as…

A: A financial intermediary is an institution that serves as a middleman in a financial transaction…

Q: What are the different ways to estimate bad debt? How does this affect net income? What does…

A: The company makes sales on cash and sales on account as well. The company generally makes sales on…

Q: Discuss the two methods for recording bad debt expense. What type of company uses each method?

A: Bad debt expense refers to the cost that a company has to incur for selling the goods on credit.…

Q: Managers wishing to avoid loan covenant violations may resort to making accounting changes that…

A: It's critical to read the terms and conditions of any loan you're thinking about, paying close…

Q: Describe the approches to estimates bad debts.

A: Definition:   Bad debt expense: Bad debt expense is an expense account. The amount of loss incurred…

Q: When you borrow money to pay for goods and services, you are using what form of payment? Savings…

A: Payment means the transfer of money or goods and services in return or exchange of any product or…

Q: Discuss the two methods of recording bad debt expense. What type of company uses each method?

A: The objective of this question is to understand the two methods of recording bad debt expense and to…

Q: escription of the financial shenanigan in detail, and explanation of how it is used

A: Financial shenanigans refer to those actions that are designed for the purpose of misrepresenting…

Q: Debit

A: Lost or stolen debit or credit both can cause problems. However the problem is more with the debit…

Q: What is

A: It is uncollectible from the debtors due to bankruptcy, financial problems, or collections by the…

Q: how exactly did you get the bad debt expense?

A: Allowance method is the GAAP approved method of providing for valuation of accounts receivable. In…