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Allowance Method of Accounting

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

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The response addresses the queries posted in 441 words with references.

// The principle of accounting incorporates numerous methods. One of the most popular methods of accounting is 'Allowance Method'. To have more understanding on it, I will describe its essential features in relation to the bad debts in the following manner: //

Allowance Method

1. Allowance method of accounting for bad debts is defined as a method of calculating accounts which are uncollectible during specified period of time or at the end of the each period of financial year. Basically, the main purpose of estimating is to find out that uncollectible amount matched to the gross receipts (Hermanson & Edwards). The essential features of allowance method of accounting bad debts ...

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This solution discusses the allowance method of accounting and how bad debts are treated in 441 words with one APA reference. This solution is also formatted in an attached Word document.