Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: How would you describe the entries to record the disposition of accounts receivables? What is their function?
A: The account receivable is disposed off when they are received in cash and the entry is made to close the account receivable control account and the customer individual account. After passing the entry the account receivable is converted into cash. [ The account receivable may be disposed off if they are not received for any reason, at this time the account receivable account is closed against
bad debts expense or allowance for bad debts accounts. ]
Get an answer
Original conversation
User: How would you describe the entries to record the disposition of accounts receivables? What is their function?





Weegy: The account receivable is disposed off when they are received in cash and the entry is made to close the account receivable control account and the customer individual account. After passing the entry the account receivable is converted into cash. [ The account receivable may be disposed off if they are not received for any reason, at this time the account receivable account is closed against bad debts expense or allowance for bad debts accounts. ]
Expert answered|dennis003|Points 595|

User: How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method?

Weegy: Under the direct write off method, the bad debts expenses are recorded when the customer does not pay its due amount to the company, as no allowance for doubtful debts is maintained under this method. [ It is used where most of the customers are good and they normally pay within time period. But for some reason, like death or bankruptcy, the customer could not pay its due amount. As there is no allowance or provision is kept for bad debts therefore it does not follow the matching principle of account as the bad debt expense should be recorded for the period for which sales had been made. ]
Expert answered|dennis003|Points 595|

User: What are the disadvantages of the direct write off method?

Weegy: Any bad-debt expense as a result of the uncollected accounts receivable is associated with the original credit sales. [ [ But using the direct write-off method, companies would not record a bad-debt expense until a later period when they deem certain accounts receivable as uncollectible. Consequently, the bad-debt expense is inappropriately recorded against the revenue of sales from a later period, mismatching the bad-debt expense with the revenue of the original credit sales. Using the direct write-off method, companies overstate the value of accounts receivable when certain accounts receivable have become uncollectible but have not been written off. ] ]
Expert answered|dennis003|Points 595|

Question
Asked 8/28/2012 6:13:08 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
The sum of the individual checks the employees will receive is recorded as: Salaries and Wages Expense. FICA Taxes Payable. State Income Taxes Payable. Salaries and Wages Payable.
Question
Expert Answered
Updated 9/22/2013 11:20:14 AM
1 Answer/Comment
The sum of the individual checks the employees will receive is recorded as: Salaries and Wages Payable.


Added 9/22/2013 11:20:14 AM
This answer has been confirmed as correct and helpful.
Confirmed by yumdrea [8/20/2014 11:42:43 AM]
26,402,169 questions answered
Weegy Stuff
S
P
P
L
P
P
P
Points 131 [Total 1867] Ratings 3 Comments 101 Invitations 0 Offline
S
Points 73 [Total 84] Ratings 5 Comments 23 Invitations 0 Offline
S
Points 30 [Total 30] Ratings 3 Comments 0 Invitations 0 Offline
S
Points 16 [Total 16] Ratings 0 Comments 6 Invitations 1 Offline
S
L
Points 15 [Total 112] Ratings 0 Comments 15 Invitations 0 Offline
S
Points 11 [Total 11] Ratings 1 Comments 1 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 5 [Total 5] Ratings 0 Comments 5 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.