Identify and define the three main sections in the income statement of a merchandising company that are different than those shown on an income statement for a service company
Discuss and compare the effects that the LIFO, FIFO and Average Cost inventory methods have on net income and on the balance sheet assuming a period of inflation.
Discuss the three (3) essential features of the allowance method of accounting for bad debts. (Hint - (1) How are bad debts estimated (2) How are estimated bad debts recorded in the financial statements - (journal entry) and (3) when and how (journal entry) are bad debts written off?)