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Information debtors (accounts receivable) ageing analysis provides

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    Wendy C.
    AU
    Wendy C.

    The Ageing analysis allows for scrutiny of individual accounts and enables an estimate of future bad debts for Profit and Loss Purposes.

    Samuel F.
    ZA
    Samuel F.

    Why isn't the direct write off method of uncollectible accounts receivable the preferred method?

    Zachary B.
    US
    Zachary B.

    What are information debtors?

    Douglas R.
    US
    Douglas R.

    Debtors need to repay for future good debts.

    Erick V.
    PE
    Erick V.

    Un registro de deudores y cuentas vencidas por cobrar es importante como ya tocamos en el modulo anterior, entre otras cosas para frenar el crédito a los clientes con alto grado de morosidad y definir un plan de recuperaciones efectivo por antigüedad asignando los recursos necesarios para este fin o tercerizando la cobranza o en algunas casos evelauando de venta de su cartera pesada

    Tony I.
    NG
    Tony I.

    How is the debtors ageing analysis different from the information debtors ageing analysis?

    Pride C.
    ZW
    Pride C.

    Under the direct write off method, a company does not anticipate bad debt expense. Rather, it waits until an account is actually written off as uncollectible before recording bad debt expense. This means its accounts receivable will be reported on the balance sheet at their full amounts—implying that all of the accounts receivable will be turning to cash. If there is some doubt concerning the collectibility of some of the receivables, the assets are potentially overstated and the company's profit is potentially overstated. Since there is usually a significant amount of time between a credit sale and the write off of a bad account, the bad debt expense will occur in a much later period than the revenue from the sale. This is a problem under the matching principle

    Jack H.
    US
    Jack H.

    Who agrees not loaning money is a good habit ?

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