use the online Professional View of the FASB Accounting Standards Codification (ASC) to answer several questions in a written report.

In the entire report, be sure to use quotation marks whenever you are not using your own words

For the fourth set of questions, address each of the requirements.

Allowance Account Database: FASB Codification Jim: This year has been great for business with fantastic customers. This should definitely help our net income and bonuses for the year! Nancy: Exactly what do you mean, Jim? Jim: Well, with great customers who should pay their bills, we will not need to establish an allowance for doubtful accounts for our accounts receivables. Nancy: Wait a minute Jim. In my accounting classes, we always recorded bad debts expense and the related allowance account. Therefore, I believe we need to estimate our bad debts and prepare an adjusting entry at year-end. Jim: But with good customers I dont think it is required to establish an allowance account. Without recording bad debts expense, our net income should increase by $250,000, which definitely helps our year-end bonuses! Nancy: We need to check whether this is acceptable under GAAP.

Required:

a. Does U.S. GAAP require the establishment of an allowance account for all accounts receivables?

b. What key words would you utilize?

c. Specifically, identify the Codification reference(s) that you used to support your conclusion.