What are the essential features of the allowance method of accounting for bad debts

Individual Assignments from the Readings

Resources: Financial Accounting: Tools for Business Decision Making

Prepare responses to the following assignment from the e-text:

• Ch. 8: Questions 3 & 4

3. What are the essential features of the allowance method of accounting for bad debts?

4. Lauren Anderson cannot understand why the cash realizable value does not decrease when an uncollectible account is written off under the allowance method. Clarify this point for Lauren.

• Ch. 8: Exercise E8-5

•  Click here for more on this paper.......
  Click here to have a similar A+ quality paper done for you by one of our writers within the set deadline at a discounted.....

Resources: Financial and Managerial Accounting: The Basis for Business Decisions

Prepare responses to the following assignment from the e-text:

• Ch. 9: Exercise E9-9

For several years, a number of Food Lion, Inc., grocery stores were unprofitable. The company closed, and continues to close, some of these locations. It is apparent that the company will not be able to recover the cost of the assets associated with the closed stores. Thus, the current value of these impaired assets must be written down (see the Case in Point on page 381).

A recent Food Lion income statement reports a $9.5 million charge against income pertaining to the write-down of impaired assets.

A. Explain why Food Lion must write down the current carrying value of its unprofitable stores.

B. Explain why the recent $9.5 million charge to write down these impaired assets is considered a noncash expense.

There is three seperate assignments. You will need the text book.

•  Click here for more on this paper.......
  Click here to have a similar A+ quality paper done for you by one of our writers within the set deadline at a discounted.....