?Accounting Discussion

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?Accounting Discussion

Business Finance, Leeds Metropolitan University

?Accounting Discussion

Question Description

Corporations are required to use the allowance method when accounting for bad debts. This necessitates the following entry at the start of the fiscal year:

Uncollectible accounts expense

Allowance for uncollectible accounts

Explain the benefits gained from this entry in terms of Balance Sheet and Income Statement presentation for the corporation and its investors.

a page is enough. I will send the replies after we post.

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