Methods of accounting for uncollectible accounts


Response to the following questions:

1. Wilson's Hardware is a small hardware store in the rural township of Struggleville that rarely extends credit to its customers in the form of an account receivable. The few customers that are allowed to carry accounts receivable are long-time residents of Struggleville and have a history of doing business at Wilson's.

What method of accounting for uncollectible receivables should Wilson's Hardware use? Why?

2. Which of the two methods of accounting for uncollectible accounts provides for the recognition of the expense at the earlier date?

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Financial Accounting: Methods of accounting for uncollectible accounts
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