ACCT Discussion week 9
Click here to take part in the discussionWatch A. Mursau’s video titled “Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)”:https://www.youtube.com/watch?v=r3YPSwFsIps&feature=youtu.beBased on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts. Take a position on whether or not estimating the allowance for doubtful accounts provides the opportunity to distort gross income.Provide support for your rationale.Part b:Use the Internet to research an annual report of a retail company.Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or creditor with the most important information needed to make accurate predictions about the company’s financial condition. When analyzing a company, is it more important to compare the ratios to competitors or to the company’s previous history?Provide a rationale for your response.Note: Students using the online discussion thread must provide a link or instructions to the researched report.