Acc 291 class discussion

1. What are the main methods used to calculate bad debt that is put on the financial statements and which statements are used to show the amount?

2. What are the main disadvantages of the direct write off method?

3. Trade Receivable? A brief explanation.

4. How does a credit manager estimates how much will truly be an uncollected receivable at the end of an accounting period?

5. What are things that can happen to change what the history shows on how much your bad debt will probably be?

6. What is the difference between tangible and intangible assets. How are intangible assets go on the financial statement?

7. What is the difference between depreciation and amortization?

8. Goodwill is an intangible asset. What is it and how is it calculated?

………………..Answer Preview………………

The methods used to calculate bad debts on the financial statements include the allowance method where the organization tries to estimate the bad debts as a given percentage of the sales of that given period. One can also use the direct write off method that bases on the past years’ experience. And directly writes the debt off directly. The debts are expressed as $0 then verify that no amount is to be paid in…..

APA

840 words