Question
Because of the overall cost of the system, Spirit has also decided to let consumers pay with monthly payments of $300 over two years.Well over
Because of the overall cost of the system, Spirit has also decided to let consumers pay with monthly payments of $300 over two years.Well over three quarters of the customers have selected the deferred payment plan.Spirit has no experience with non-governmental sales.Mike Mager, the CFO at Spirit, realizes that some accounts will likely prove to be uncollectible and wants to know how to account for these uncollectible amounts. How is Mike Mager going to account for the amounts that will be uncollectible?And where in the FASB Accounting Standards Codification can one find the rules for these uncollectible amounts?
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