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The two methods of accounting for uncollectible receivables are the allowance method and the?
Wiki User
∙ 12y ago
The direct write-off method. For tax purposes, companies must use the direct write-off method, under which bad debts are recognized only after the company is certain the debt will not be paid. Before determining that an account balance is uncollectible, a company generally makes several attempts to collect the debt from the customer. Recognizing the bad debt requires a journal entry that increases a bad debts expense account and decreases accounts receivable.
Wiki User
∙ 12y ago
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Account receivables
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Wh
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Mechanical methods of time keeping in cost accounting?
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