ACCT Discussion week 9

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Click here to take part in the discussion

  • Watch A. Mursau’s video titled “Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)”:
  • Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts. Take a position on whether or not estimating the allowance for doubtful accounts provides the opportunity to distort gross income.
  • Provide support for your rationale.


Part b:

  • Use the Internet to research an annual report of a retail company.
  • Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company’s financial condition. When analyzing a company, is it more important to compare the ratios to competitors or to the company’s previous history?
  • Provide a rationale for your response.

  • Note:

    Students using the online discussion thread must provide a link or instructions to the researched report.
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