Accounts receivable balances are required to be reflected at net realizable value as of the balance sheet date. Use of the allowance method for estimating bad debit is the preferred method because it: A) is required by GAAP.
B) it provides for better matching of revenue with expenses.
C) A and B
D) None of the above

Accounts receivable balances are required to be reflected at net realizable value as of the balance sheet date. Use of the allowance method for estimating bad debt is the preferred method because it:

C) A and B

Explanation:

Company XYZ can use the allowance method which ensures that the Accounts receivable balances are stated at their gross amount and not the net realizable value.  Therefore, the allowance account is a contrary account with normally a credit balance.  The allowance method is required by GAAP and provides for better matching of revenue with expenses.  Company XYZ can use two methods for estimating bad debt under the allowance method.  The first is the percentage sales method and the accounts receivable aging method.  Whichever method is chosen depends on the decision of management.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.