• Dans Hardware is a small hardware store in the rural township of Twin Bridges. It rarely extends credit to its customers in the form of an account receivable. The few customers who are allowed to carry accounts receivable are long-time residents of Twin Bridges with a history of doing business at Dans Hardware.
  • What method of accounting for uncollectible receivables should Dans Hardware use?
  • Why should Dans hardware use that method?
  • What are the advantages and disadvantages of using that method?