Discuss separately the arguments for and against each of the proposed methods from both the theoretical and practical viewpoints.
Why it is it important to distinguish between expenses that need to be capitalized and expenses that need to be expensed.
September 19, 2019Heather uses the allowance method for bad debts. During her first year of operations, Heather recorded (1) $200,000 of estimated bad debts expense, (2) $17,000 of write-offs, and (3) $1,000 of subsequent collections of receivables previously written off.
September 19, 2019Discuss separately the arguments for and against each of the proposed methods from both the theoretical and practical viewpoints.
Question Description
2-3 references
400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
Atwater Manufacturing Company purchased a new machine that was specially built to perform one particular function on the assembly line. A difference of opinion has arisen as to the method of depreciation to be used in connection with this machine. Three methods are now being considered: the straight-line method, the productive-output method, and the sum-of-the-years’-digits method.
- Describe each of the 3 methods.
- Discuss separately the arguments for and against each of the proposed methods from both the theoretical and practical viewpoints.
- Which would you select?
