Question

In: Accounting

You have been hired as a consultant by a parts manufacturing firm to provide advice in...

You have been hired as a consultant by a parts manufacturing firm to provide advice in regards to the proper accounting methods the company should use in some key areas. In the area of receivables, the company president does not understand your recommendation to use the allowance method for uncollectible accounts. She stated, "Financial statements should be based on objective data rather than the guesswork required for the allowance method. Besides, since my uncollectibles are fairly constant from period to period, with significant variations infrequently, the direct write-off method is just as good as the allowance method."

Draft a one-page response to the president, in the form of a memo, to support your recommendations for the company to use the allowance method. In your response, present the positives and negatives of both the allowance and direct write-off methods, and be as persuasive as possible.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

You have been hired as a consultant by a parts manufacturing firm to provide advice as...
You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the company should use in some key areas. In the area of receivables, the company president does not understand your recommendation to use the allowance method for uncollectible accounts. She stated, "Financial statements should be based on objective data rather than the guesswork required for the allowance method. Besides, since my uncollectibles are fairly constant from period to period,...
You have been hired as a consultant by a parts manufacturing firm to provide advice as...
You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the company should use in some key areas. In the area of receivables, the company president does not understand your recommendation to use the allowance method for uncollectible accounts. She stated, “Financial statements should be based on objective data rather than the guesswork required for the allowance method. Besides, since my uncollectibles are fairly constant from period to period,...
Topic: You have been hired as a consultant by a parts manufacturing firm to provide advice...
Topic: You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the company                should use in some key areas. In the area of receivables, the company president does not understand your recommendation to use the                allowance method for uncollectible accounts. She stated "Financial statements should be based on objective data rather than the                guesswork required of the allowance method. Besides, since my uncollectibles are fairly constant...
You are an IT Consultant at FinTechCo and have been asked to provide advice to the...
You are an IT Consultant at FinTechCo and have been asked to provide advice to the Senior Leadership Team to improve the current recruitment strategies. All candidates should satisfy the following three criteria to be considered for a position at FinTechCo: 1. Professional qualifications (P) 2. Industry Experience (E) 3. Leadership qualities (L) FinTechCo has a total of 45 employees. A recent mandatory employee survey revealed: 11 staff have Professional qualifications, the necessary industry Experience and Leadership qualities (i.e. satisfy...
You have been hired as a change management consultant for a manufacturing company. The leadership of...
You have been hired as a change management consultant for a manufacturing company. The leadership of the company currently uses a top-down management approach. The organizational structure is a hierarchy (pyramid type). Employees are not encouraged to be creative or make suggestions or decisions. They are also not encouraged to experiment and come up with new solutions to problems.The company has grown rapidly over the past decade, from generating $1 million in sales to $100 million. In the past year,...
You have been hired as a security consultant for a law firm. Which of the following...
You have been hired as a security consultant for a law firm. Which of the following constitutes the greatest source of security threats to the firm? A) Wireless Network B) Employees C) Authentication procedures D) Lack of data encryption
You have been hired by the mayor of Philadelphia to provide sage economic advice. The mayor...
You have been hired by the mayor of Philadelphia to provide sage economic advice. The mayor would like to implement a tax on large fountain soda drinks of $0.80 per drink which the buyers will pay when purchasing the drink. At the moment, soda lovers currently consume 1 million fountain drinks per year in the city (i.e. equilibrium quantity). You are given some data on both the demand and supply curves. For every $0.10 increase in the price of the...
You have been hired as a consultant to a Mobile Development Firm. The organization would like...
You have been hired as a consultant to a Mobile Development Firm. The organization would like your top three ideas for new mobile applications that would generate revenue for business. The three applications must include a game, a professional tool, and a lifestyle application. Please describe each of these applications, their features, benefits, and purpose including navigation. Discuss design, colors, and other functionality you consider to be important. Discuss why your ideas are original and sell them to the company....
You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested...
You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested in investing in a new factory. However, the CEO is unsure of where they should invest. The CEO would like to either invest in a developed or a developing country and your input is valuable to his decision. Your focus will be on providing specific information on both a developed and developing country, providing that both countries have data for the last 20 years....
You are working as a consultant and have been hired by a company to assist in...
You are working as a consultant and have been hired by a company to assist in creating a company Code of Ethics in order to attract and retain more customers to your products and to prove the company’s ethical conduct & practices. This smaller, private company sells footwear for the Canadian and American marketplaces. The company has made the decision to do business with a supplier in Brazil. The initial product quality has been very good, and the delivery of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT