 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts f
The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz. co. should be 2% of net credit sales. The presdident of Ruiz Co. nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which refects a 6% growth rate, will be a more sustainable rate for Ruiz Co.
|
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
At the close of its first year of operations, December 31, 2010, Ming Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2010, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of...
IF a company sold$ 60000 of merchandise on credit.and Wrote off $10000 of uncollectible accounts receivable.Received $20000 cash in payment of accounts receivable. In adjusting the accounts , the company estimated that 0.5% of accounts receivable will be uncollectible. How can I account the ...
Is is ever appropriate or acceptable to debit Revenue when recording an allowance for doubtful accounts? Or do you have to debit Bad Debt Expense? FAS-5 doesn't seem to address this from what I can tell.
Discuss the implications of the changes in the aging schedule
View more questions Search
|
