Assignment:
400-600 words
1. What are the 2 methods that companies implement to adjust the outstanding accounts receivable for the current accounting period? How often is this done?
2. Please provide an example of each in detail.
3. Explain how these methods can impact the financials as a whole, and specifically how they can be misread by an overstatement of accounts receivable dependent upon the users of the information.
4. Please include in your explanation which method you feel would be best a small equipment rental company, and support your reasoning.