Which of the following is/are not a shortcoming of the direct write-off method?
a. It provides firms with an opportunity to manage earnings each period by deciding when particular customers' accounts become uncollectible.
b. It does not usually recognize the loss from uncollectible accounts in the period in which the sale occurs and the firm recognizes revenue.
c. The amount of accounts receivable on the balance sheet does not reflect the amount a firm expects to collect in cash.
d. It is the method required for income tax reporting in the United States.
e. none of the above.
D
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The Comprehensive Environmental Response, Compensation, and Liability Act defines which of the following as potentially responsible parties who can be held liable for cleanup costs and damages to natural resources from hazardous wastes:
a. current owners of a hazardous waste site b. prior owners of a site at the time of hazardous waste disposal c. any hazardous was generator who arranged for disposal at the site d. all of the other specific choices are correct e. none of the other specific choices are correct
Organizations first implemented CRM to capture customer data for analysis
Indicate whether the statement is true or false
Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:
A. $500 B. $4,800 C. $10,100 D. $5,300
Karen Company had the following account balances prior to the write off of a $100 customer account: Accounts receivable $9,500 Allowance for doubtful accounts 400 The net realizable value of the receivables before and after the write-off was:
A) $9,100 $9,100 B) $9,500 $9,000 C) $9,100 $9,000 D) $9,000 $9,000 E) $9,400 $9,100