Commerce and Management Sciences World

Commerce, Financial Accounting, Human Resource Management,, Cost Accounting, Principles of Business

Category: Financial Accounting

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It is essential to collect accounts receivable in a timely manner, thereby generating enough cash flow to support company operations. Rapid collection also improves the ability of a company to use its receivables as collateral for loans, since newer receivables qualify for treatment as collateral. Collecting accounts receivable is not just the task of the [...]
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Evaluating Accounts Receivable Business owners know that some customers who receive credit will never pay their account balances. These uncollectible accounts are also called bad debts. Companies use two methods to account for bad debts: the direct write‐off method and the allowance method. Direct write‐off method. For tax purposes, companies must use the direct write‐off [...]
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