{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Slide25 - Allowance Method Suppose Compuport — Knows from...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Allowance Method - Suppose Compuport — Knows from experience that it will not collect about 2% of sales — Has sales in 20X1 of $100,000 — Estimates that 2% x $100,000 or $2,000 of the 20X1 sales will be uncollectible — Does not know on December 31, 20X1, which customers will fail to pay their accounts - Compuport can still acknowledge the $2,000 worth of bad debts in 20x1 ...
View Full Document

{[ snackBarMessage ]}