Week One Discussion Questions
How would you describe the
entries to record the disposition of accounts receivables? What is their
How are bad debts accounted for
under the direct write-off method? What are the disadvantages of this method?
Pendergrass Company hires an
accounting intern who says that intangible assets should always be amortized
over their legal lives. Is the intern correct? Explain.
What are the basic issues
related to accounting for intangible assets?
Why would you select the
percentage of sales method for calculating doubtful accounts instead of the
percentage of receivables method?
Is it appropriate to use a
hybrid of the percentage of sales and the percentage of receivables methods of
calculating the allowance for doubtful accounts? Do the generally accepted accounting
principles allow for using both methods at the same time? Why?
What is the difference between
revenue expenditures and capital expenditures during a useful life? Are there
What are the differences
between revenue expenditures and capital expenditures? Explain the entries of