Accounting BTN 7-4.docx - Ashley Taylor Financial...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ashley Taylor Financial Accounting 101 Yvonne Baker 12 March 2018 BTN 7-4 ASSIGNMENT Sid Omar, bad debt expenses are the actual cost that is occurred by our company due to our accounts such as accounts receivable, not paying the full amount due. We only occur bad debts after the expenses occur following credit card sales. This is a number that is a direct representation of these expenses. Moving onto the allowances for doubtful accounts, those are accounts that are an estimate before the billing period, after certain periods, the debts turn bad. We use the estimates to set aside money so that we will be able to cover these delinquent accounts. Now, the 2% of sales is the estimate that Pure-Air Distributing choses to use. Some associates could argue that we should raise the percentage. Other associates would suggest that in addition to this percentage or raising it, we invest into a good credit recovery policy. At the end
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern