
Concept explainers
(1)
Direct write-off method:
This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting
Allowance method:
It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated, and recorded at the end of particular period. Under this method,
To Compute: The bad debts expense of 2016.
(2)
To compute: The amount of bad debts written-off during 2016.
(3)
To compute: The amount of bad debts expenses for 2016 if the company uses the direct write off method.

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Chapter 7 Solutions
INTERMEDIATE ACCOUNTING
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