Which accounting concept is applied when an entry is made for bad debts? A. Going-concern B. Materiality C. Accruel D. Historic cost

Q: The debts written of as bad, if recovered subsequently are a. Credited to bad debts recovered…

A: Debtors are the persons to whom business has made credit sales and amount has not been received yet.…

Q: . FLORES Company, wholesaler, uses the aging method to estimate bad debt loss or impairment loss.…

A: Lets understand the basics. Under aging method, bad debt expense is calculated using bifurcation of…

Q: The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a…

A: SOLUTION A ALLOWANCE FOR DOUBTFUL ACCOUNTS  IS AN ALLOWANCE FOR BAD DEBT THAT DECREASES ACCOUNTS…

Q: Which one of the following best describes the allowance for doubtful accounts? a.Statement of…

A: Allowance for doubtful debt is created for the accounts receivables whose recovery is uncertain. It…

Q: Which of the following items is not being considered in the computation of recovery percentage of…

A: Secured creditors are those liabilities which are being secured by some property or assets of the…

Q: The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a…

A: Consistency Characteristic: Consistency is a concept that asserts that once you have adopted an…

Q: Which method of recording bad debt loss is consistent with accrual accounting?   A. Allowance…

A: Allowance for doubtful debts is known as a contra asset account i.e used to decrease the value of…

Q: Who is more likely to record a loss from debt restructuring? A. depends on the situation…

A: Debt Restructuring: Debt restructuring is the process of settlement of Loan between debtor or…

Q: measuring and recognizing impairment loss on receivables?

A: A is correct because the analysis of past experience gives the estimate of impairment loss on…

Q: o methods of accounting for bad debts? Wh

A: 1.The direct write-off method 2. allowance method.   In the direct write-off method, an allowance…

Q: Which one of the following accounts is unlikely to ever be seperately disclosed in the income…

A: Financial statement:The financial statement is the statement or the record that is prepared by the…

Q: Describe the accounting treatment of anticipated uncollectible accountsreceivable.

A: As per the matching principle of accounting, all expenses relating to the revenues must be accounted…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A: Allowance method: It is a method for accounting bad debt expense, where uncollectible accounts…

Q: Determine the following by preparing a multi-step form of SCI.  Bad debts expense Gross Profit…

A: Multi Step Income statement is one of the income statement of business, which shows all incomes and…

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: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: What is the theoretical justification of the allowancemethod as contrasted with the direct write-off…

A: Determine the theoretical justification of the allowance method.

Q: The debts written off as bad, if recovered subsequently are   Oa. Credited to bad debts recovered…

A: Bad debts are part of the accounts receivables which are no longer collectible. This is because the…

Q: Distinguish the difference between Bad Debts and Provision for Doubtful Debts, indicating the…

A: When a account receivable is clearly identified as the amount will not be received then such account…

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: How are gain contigencies reported in the financial statements?

A: A gain contingency A  gain contingency  is a possible gain arising from past events but whose…

Q: What is the difference between the cash basis and accrual basis of accounting as to the following:…

A: The answer for the theory question on difference between cash basis and accrual basis of Accounting…

Q: Bad debt expense is normally reported on the income statement as a(n) a. Operating expense b.…

A: An expense that is recognized as a receivable is no longer collectable is known as a bad debt…

Q: Which of the following is not a liability?

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: Allowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset…

A: solution:- Introduction:- Allowance for doubtful accounts means as follows under:- Allowance for…