3.

What is the allowance for doubtful accounts?

4.

Describe the allowance method for writing off a specific account receivable.

5.

Your client just called their accountant (you). They have identified a customer account receivable

for $4,000 that should be written off (the company went bankrupt). The client asked how will

this write off impact their net income?

a.

Explain to your customer (and me) why there is no impact to net income.

b.

Why might you tell the customer that eventually there could be an indirect impact of

the $4,000 write-off on net income