Category: Bookkeeping

However, it requires an estimate of bad debts, rather than the specific identification of bad debts, and so can be less accurate than the direct write-off method. A significant disadvantage of the Allowance Method is the complexity involved in estimating bad Bakery Accounting debts. Companies must use historical data, industry trends, and judgment to make… Continue reading The Direct Write off Method: How to Handle Bad Debts in the Books

However, it requires an estimate of bad debts, rather than the specific identification of bad debts, and so can be less accurate than the direct write-off method. A significant disadvantage of the Allowance Method is the complexity involved in estimating bad Bakery Accounting debts. Companies must use historical data, industry trends, and judgment to make… Continue reading The Direct Write off Method: How to Handle Bad Debts in the Books