ACC 100 Accounting Principles I Week 9 Discussion 1

“Valuation of Accounts Receivables” Please respond to the following:

  • Watch A. Mursau’s video:
  • Then, discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing off accounts. Even though the direct write-off method is not acceptable for generally accepted accounting principles (GAAP) reporting, take a position on whether or not estimating the allowance for doubtful accounts distorts gross income. Propose an alternative method to increase the accuracy of reporting. Explain your rationale.
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There are various methods used in the valuation of the receivable accounts as they appear on the balance sheet of the company. The adjustments made to the receivable accounts include returns on sales, accounts uncollectible and discounts. There are two methods that are commonly used and include the direct write-off method and the allowance method. The use of the direct …

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