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How would you describe the entries to record the disposition of accounts receivables? What is their function?
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. ]
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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|

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Asked 8/28/2012 6:13:08 PM
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