Chapter-8BarryBus21

The older and more overdue an account receivable

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

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

Unformatted text preview: lder and more overdue an account receivable becomes, the less likely it is to be collectible. 15 16 17 18 19 Other Issues Revising Estimates -- Bad debt estimates always differ from the amounts that are later written off. If these differences are material, companies are required to revise their bad debt estimates for the current period. Account Recoveries -- Collection of a previously written off account is called a recovery and it is accounted for in two parts. First, put the receivable back on the books by recording the opposite of the write-off. Second, re...
View Full Document

This document was uploaded on 03/13/2014 for the course BUS 021 at UC Riverside.

Ask a homework question - tutors are online