Question 10: Business management identifies that the longer an accounts receivable remains outstanding, the less likely the business will collect the receivable from the customer. Identify a method/approach that is appropriate for accounting for uncollectible receivables in this case and describe the method/approach including why it is appropriate (when describing, please describe how bad debt expenses are recorded using the method/approach, and/or provide an example of the journal entry required). Identify and describe the method/approaches that are less appropriate for accounting for uncollectible receivables in this case (when describing, please describe how bad debt expenses are recorded using the method/approaches, and/or provide examples of the journal entries required). (8 marks)

Clearly label each part of your answer as follows: Appropriate method and approach is.......... Less appropriate methods and approaches are.........