level: Trade Receivable
Questions and Answers List
level questions: Trade Receivable
| Question | Answer |
|---|---|
| How to calculate ending balance of Allowance of Doubtful Accounts (2 ways) | % of Ending AR Aging Schedule of AR |
| If pledging AR, what account should be credited? | Note Payable |
| Selling AR without recourse | True Sale, take AR off books |
| Selling AR with recourse | Sale (if met by all three) or Loan 1) Seller's Obligation reasonably estimated 2) Transferer surrenders control 3) Transferer not required to repurchase AR |
| What is the direct write-off method used for, and can it be used for GAAP? | It's used for tax purposes, and no it cannot be used for GAAP. Bad Debt is our plug figure in Allowance for Doubtful Accounts |