Albert Robins Company, Inc. -- Trade Receivables
12 Pages Posted: 21 Oct 2008
This case raises the question, How does a company reasonably estimate and record entries for uncollectible trade receivables and under what circumstances are receivables written off as uncollectible? The required accounting transactions for the case involve estimating a receivables allowance both as a percentage of sales and as a percentage of accounts receivable, and making specific account judgments under the direct write-off method. The subjective issues involve analyzing and assessing a company's methods of collection and accounting for bad debts.
Keywords: assets, balance sheet, accounting, financial accounting, balance sheet
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