ACT 300 CT#5

.docx

School

Colorado State University, Global Campus *

*We aren’t endorsed by this school

Course

300

Subject

Industrial Engineering

Date

Dec 6, 2023

Type

docx

Pages

Uploaded by Zafeena.gordon

Option #1: The Tableau analytics 1 Option #1: Tableau DA 8-2, Problem 9-3A The Tableau analytics Zafeena Gordon Colorado State University Global ACT300: Principles of Accounting & Analytics Professor Karina Kasztelnik Date: 11/07/2022

Option #1: The Tableau analytics 2 Part A: CT #4 Option #1 done in Connect Please see screen shot for score in Connect. Part B: Differences between bad debt expense and the allowance for doubtful accounts

Option #1: The Tableau analytics 3 There are many different reasons; the configuration of a doubtful accounts and bad debt expense might change. The means for dubious accounts is a delay indication, which can be the most commom explanation. This indicates that it is behind the actual expense for bad debt. The provision for dubious accounts is an estimate, which is the second justification. This indicates that it is found on past information and trends. The amount of money that a business anticipates losing because of clients who refuse to pay their invoices is known as the bad debt expense. The amount of money that a business will not be able to recoup from consumers is estimated by the allowance for questionable accounts. The provision for dubious accounts is a trailing indication, thus the two amounts may vary. This indicates that it is behind the actual expense for bad debt. The provision for dubious accounts is an estimate, which is the second justification. This indicates that it is founded on past information and trends. On a company's financial records, the distinction between bad debt expenditure and the provision for doubtful accounts can be quite important. The financial accounts of a corporation may appear better or worse than they actually are if the difference is significant. It is crucial that businesses comprehend the distinction between the two numbers and how they may affect their financial accounts. Let us imagine, for illustration purposes, that a business has $500 in the allowance for questionable accounts and $1,000 in bad debt expense. This indicates that the business anticipates losing $1,000 because of consumers who are late on their payments. However, the company's tolerance for questionable accounts is merely $500. In spite of the fact that the company actually expects to lose $1,000, the financial accounts will reflect $500 in bad debt expense. As a result, a company's financial accounts may appear to be stronger than they actually are, which can be problematic. Investors may believe that a company is in better financial position than it actually is if they see that it has $500 in bad debt expenses. If the business is unable to pay its debts, this could cause issues in the future. Understanding the distinction between bad debt expenditure and the provision for

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help