ACC202: Question 2 2020 was a Challenging year for Momo Hardware Hit by a Sharp fall in sales, the Company allowed Credit sales for the First Time: Financial and Managerial Accounting Assignment, SUSS, Singapore

Submit your homework question & Get Plagiarism free Answers.

University Singapore University of Social Science (SUSS)
Subject ACC202: Financial and Managerial Accounting

Question 2
2020 was a challenging year for Momo Hardware. Hit by a sharp fall in sales, the company allowed credit sales for the first time. For the year 2020, total credit sales were $500,000 while the year-end accounts receivable balance was $200,000.

When preparing the year-end accounts, the accountant proposed to write off $10,000 as one of the customers is bankrupt.

The accountant also proposed to estimate the accounts receivable that will likely be written off before they become uncollectible. Based on the aging of receivables, he estimated the number of doubtful debts for the year to be $20,000.

However, the CEO objected to both proposals.

Explain to the CEO the need for both actions. In your explanations, you should cover:

  • Why do you think the CEO did not agree to your proposals?
  • What are the key differences between the direct write-off method and the alternative method proposed by the accountant?
  • Who is correct? Why?
  • How would the proposals affect the financial statements?

Hire a Professional Essay & Assignment Writer for completing your Academic Assessments

Native Singapore Writers Team

  • 100% Plagiarism-Free Essay
  • Highest Satisfaction Rate
  • Free Revision
  • On-Time Delivery

Get Help By Expert

Get  Financial Accounting theory assignment help from the experts of Singapore assignment help. We have highly educated suss university assignment experts who have vast experience in accounting. They are providing efficient help on Financial and Managerial Accounting Assignments for long periods of time. Our experts are devoted to providing you error-free and plagiarism-free solutions at an affordable price.

Looking for Plagiarism free Answers for your college/ university Assignments.

Hire An Assignment Writer

Add More