For Puja

Michelle Carroll is a coworker of yours and she overheard a conversation at work about changes that her boss wants to make in accounting for uncollectible accounts receivable. She does not know a lot about accounting and wants to understand about what she overheard.

In an email, she asks you to explain the following:

• The three different methods that can be used to account for uncollectible accounts receivable, specifically:
• percentage of receivables
• percentage of sales
• the direct write-off methods

 

Reply to her email about these differences.