Explain the two methods used to estimate uncollectible accounts
One method analyzes the net credit sales of the current period and is referred to as the percentage of net sales method. Because revenue from the current period only is being considered, the calculation results in an estimate of the uncollectible accounts expense for that same period. This is an attempt to quantify the risk taken by making sales on account in that period.
The second method is called the accounts receivable aging method. The accounts receivable are grouped according to how long they have been open. A different percentage of uncollectibility is applied to each age group and then all results are summed to arrive at an estimate of the amount of current receivables that will not be collected. This becomes the new balance for the Allowance for Uncollectible Accounts account.
1600 ). Why should a dishonored note receivable be transferred to an individual account receivable for the debtor?
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In both civil and criminal cases it is the responsibility of the jury to:
A. Investigate the criminal background of the defendant. B. Determine whether a lawyer should be sanctioned for misconduct in the trial C. Determine whether or not a witness should be allowed to testify in the trial. D. Resolve questions of law. E. Resolve questions of fact.
Physical distribution activities include all of the following EXCEPT which one?
A) order processing B) warehousing C) materials handling D) transportation E) order getting