Answered: Please give real life examples and…

Please give real life examples and simple definitions for the following: 1. What are the methods of estimating bad debts?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 1DQ

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Question

Please give real life examples and simple definitions for the following:

1. What are the methods of estimating bad debts?

2. What is the accounting procedure for bad debts write off?

3. What is meant by bad debts recovery? Give an illustrative example.

Definition Definition Receivable amount that a company is owed, but did not receive, and which may not be receivable in future.

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When a customer is delinquent on paying a notes receivable, your company has the option to continue to attempt collection or sell the debt to a collection agency. Research the benefits and challenges with each of these options and in a short essay, answer the following questions. A. What are the benefits and challenges of continuing to attempt collection yourself? B. What are the benefits and challenges of selling debt to a collection agency? C. If you had a dishonored notes receivable, which option would you select and why? D. Would you weight certain benefits or challenges differently when making your selection? How?
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