Problem
• Briefly describe the two methods for recording and writing-off bad debts.
• What accounts are debited and which are credited when recording a bad debt using the direct write off method?
• What accounts are debited and which are credited when recording bad debts expense using the allowance method?
• Describe the three options for estimating bad debt under the allowance method.
• What does the Accounts Receivable Turnover ratio tell us, and how is it calculated?
• How do you compute interest for a partial year?
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.