Prepare jornal entries using the allowance method for accounting for bad debts. Explain the use of the percentage of sales method of estimating bad debts. Explain the use of the accounts receivable aging method for estimating bad debts. Prepare Journal Entries writing off a bad debt. Contrast the two methods of estimating bad debts.
Notes Explain the meaning of the maturity value of a note.
Write journal entries for the note when received. Write journal entries for the note when paid. Chapter 8 Plant Assets, Intangible Assets, and Related Expenses 1. Define useful life, book value and residual value. Sold for a more than book value.