Question
1. Using the allowance method, please walk us through all of the different journal entries and steps related to that including how we determine the
1. Using the allowance method, please walk us through all of the different journal entries and steps related to that including how we determine the amount of bad debt, what the journal entry is when we recognize the allowance, what the journal entry is when we actually write off the debt and what happens if the customer pays us after the fact. Do you agree with how bad debt is handled and are we leaving room for manipulation of the numbers?
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
