Why does the write-off of uncollectible accounts have no effect on the accounts receivable on the...

Why does the write-off of uncollectible accounts have no effect on the accounts receivable on the balance sheet if bad debts are estimated? If not directly written off as bad debts expense how does a company properly recognize uncollectible receivable activity on the income statement? Why are controls over the cash asset so important? What risks exist if adequate controls are not in place? Why is it important to distinguish between current assets and long term assets? What concerns would you have if a company’s current assets increased dramatically? What concerns would you have if current assets decreased while long term assets increased dramatically?

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ekkarill92 answered 6 months ago

Microsoft Dynamics GP Write off an Uncollectible accounts receivable Under the allowance method, the write off...

Microsoft Dynamics GP Write off an Uncollectible accounts receivable Under the allowance method, the write off of a specific accounts receivable: 1. Decreases net income and decreases accounts receivable. 2. Decreases net income and decreases working capital. 3. Affects neither net income nor accounts receivable. 4. Affects neither net income nor working capital. 5. Increases bad debit expense and increases the allowance for doubtful accounts.

the net realizable value of accounts receivable not change when you write off an uncollectible account...

the net realizable value of accounts receivable not change when you write off an uncollectible account using allowance method. Explain in detail.

Why there is a need to estimate uncollectible accounts receivable? Explain

Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31:...

Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,400 Lee Drake 30,700 Jenny Green 29,800 Mike Lamb 17,800 Total $102,700 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $735,000 1% 31–60 days 290,000 2 61–90 days 115,000 15 91–120 days 70,000 30 More...

What effect does a sale on credit have on the following accounts Accounts Receivable, Sales Revenue,...

What effect does a sale on credit have on the following accounts Accounts Receivable, Sales Revenue, Cost of Goods Sold, and Inventory ? Does each account increase or decrease ?

Under the allowance method for estimating uncollectible accounts, the entry to write off an account: A)...

Under the allowance method for estimating uncollectible accounts, the entry to write off an account: A) reduces total assets B) reduces net income C) has no effect on total assets D) increases net income Why is the answers c) I dont not understand since a write off would credit account receivable ( assets) and debit allowance of doubtful account.

The CHS Company has provided the following information: Accounts receivable written-off as uncollectible during the year...

The CHS Company has provided the following information: Accounts receivable written-off as uncollectible during the year amounted to $13,400. The accounts receivable balance at the beginning of the year was $340,000. The accounts receivable balance at the end of the year was $400,000. The allowance for doubtful accounts balance at the beginning of the year was $15,900. The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $14,800. Credit sales...

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Why does the write-off of uncollectible accounts have no effect on the accounts receivable on the...

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