Paulineâ€™s Pottery has always used the direct write-off method to account for uncollectibles. The companyâ€™s revenues, bad debt write-offs, and year-end receivables for the most recent year follows:2013: Revenues = $150,000 Write-offs = $3,900 Receivables at year-end = $14,000The business is applying for a bank loan, and the loan officer requires figures based on the allowance method of accounting for bad debts. In the past, bad debts have run about 4% of revenues. Required: Pauline must give the banker the following information:How much more or less would net income be for 2013 if Paulineâ€™s Pottery were to use the allowance method for bad debts? â€“Assume Pauline uses the percentage-of-sales method.How much of the receivables balance at the end of 2013 does Paulineâ€™s Pottery actually expect to collect?Explain why net income is more or less using the allowance method versus the direct write-off method for uncollectibles.
https://www.ukbestwritings.com/wp-content/uploads/2021/05/uk-best-writings-300x45.png 0 0 Ukbwadmin https://www.ukbestwritings.com/wp-content/uploads/2021/05/uk-best-writings-300x45.png Ukbwadmin2021-07-10 00:29:542021-07-22 06:13:29Paulineâ??s Pottery has always used the direct write-off method to account for uncollectibles. The..