chapter 8

Chapter 8 - doubtful accounts through an adjusting entry at the end of each period 4 The decrease in cash realizable value occurs when estimated

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John Rubinetti Financial Accounting 11/27/07 3. The essential features of the allowance method of accounting for bad debts are as follows. - Actual uncollectibles are debited to allowance for doubtful accounts and credited to accounts receivable at the time the specific account is written off as uncollectible. - Uncollectible accounts receivable are estimated and matched against sales in the same accounting period in which the sales occurred. - Estimated uncollectibles are debited to bad debts expense and credited to allowance for
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Unformatted text preview: doubtful accounts through an adjusting entry at the end of each period. 4. The decrease in cash realizable value occurs when estimated uncollectibles are recognized in an adjusting entry, and Lauren should acknowledge this. The write off of the uncollectible account reduces both accounts receivable and the allowance for doubtful accounts by the same amount. This results in the cash realizable value not changing....
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This note was uploaded on 04/29/2008 for the course AC 11 taught by Professor Kravet during the Fall '07 term at Fairfield.

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