170. Discuss the differences between the allowance method and the direct write-off method for recording uncollectible accounts. Which of the two is acceptable under financial accounting rules? ...

170. Discuss the differences between the allowance method and the direct write-off method for recording uncollectible accounts. Which of the two is acceptable under financial accounting rules?

171. How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower receivables turnover preferable?

172. Explain why the percentage-of-receivables method is referred to as the
balance sheet method
and the percentage-of-credit-sales method is referred to as the
income statement method. Which method is typically used in practice? Why?