Ask Question
BusinessBusiness
28 October, 22:34

An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected is the:Select one:a. Allowance method of accounting for bad debts. b. Aging of notes receivable. c. Adjustment method for uncollectible debts. d. Direct write-off method of accounting for bad debts. e. Cash basis method of accounting for bad debts.

+3
Answers (1)
  1. 28 October, 22:43
    0
    a. Allowance method of accounting for bad debts

    Explanation:

    This method reduce the amount of the account receivable balance by an estimation of how much of the account receivable will never be collected.

    The entry to the accounting system will be a debit to Bad Debts Expense

    and credit to Allowance for Doubtful Accounts.

    When a debt is written-off the entry it's to credit Allowance for Doubtful Accounts then a debit to account receivable to recognize the loss.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What is a trade balance? a. a method of determining which countries to trade with b. a method of comparing the value of currencies c. a comparison between a country's imports and exports d. a comparison between a country's taxes and services
Answers (1)
While the diary of anne frank is one of the most commonly taught books, it is also one of the most commonly banned books. one common argument is that it should be banned because it is "too depressing" for students. do you agree with this?
Answers (1)
A company has Net Income of $10, which included $2 of depreciation expense. There were no other noncash expenses in Net Income and there were no gains or losses. Accounts receivable was $20 at the beginning of the year and $25 at the end of the year.
Answers (1)
The common stock account in a company's balance sheet is measured as: -The number of common shares outstanding multiplied by the stock's par per share -The number of common shares outstanding multiplied by the stock's current market price per share
Answers (1)
The impact of unplanned spending
Answers (1)
New Questions in Business
Javier is the business manager at his college. In his role, Javier makes a lot of business decisions. Javier has installed a vending machine in a dorm for soft drinks. The machine rents for $200 a month and the electrical use is minimal.
Answers (1)
If the economy starts to boom and loan demand picks up, what do you predict will happen to the money supply?
Answers (1)
The comparative balance sheets of Friends, Inc. show a net increase in accounts receivable of $650 and a net decrease in inventory of $500. To determine net cash flow from operating activities under the indirect method, net income should be:
Answers (1)
A company has net sales of $1,630,200 and average accounts receivable of $418,000. What is its accounts receivable turnover for the period?
Answers (1)
Which of the following is a common way to describe a product that is being offered for sale? in the market on the market on exchange in business
Answers (1)
Home » Business » An accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected is the:Select one:a.
Sign Up Forgot Password?