Accounting 9
Watch A. Mursau’s video titled “Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)”:
https://www.youtube.com/watch?v=r3YPSwFsIps&feature=youtu.be
- Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts. Take a position on whether or not estimating the allowance for doubtful accounts provides the opportunity to distorts gross income.
- Provide support for your rationale.
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There are businesses which do sell their gods and services to their customers on credit. Some of these customers at times they fail to pay the company the money they owe them thus making the company to experience crisis of bad debt. When these happen the company is forced to look for other means to deal with this problem. If the measures they take do not work the company has to write off the…..
APA
317 words