what are the methods used to estimate the provision for doubtful debts?&the controls used to reduce bad debts?

Answer 1

There are a few ways of provision for bad debt.

1) Actual. Where a company identifies individual accounts that are delinquent and/or likely to be uncollectable. Usually, companies use a receivables aging, whereby they are 30/60/90 days past due the payment terms. Every company is different, but a common provision policy would be to provision 10%, 50% and 100% for 30/60/90 days past due.

2) Estimate. A company takes an estimate, a general percentage of how much of their receivables are bad at any one time. The general theory is that the company has been doing business for quite some time and their customer base is large enough that they get a general feel of what it "should be". This is up to management discretion.

Controls: Invoices have terms on the invoice. Controls on invoices (e.g. sequential numbering). Testing of receivables on sample basis. Aging policy is nice because it is a black & white control on what it should be. For estimates, no control since it is a management estimate - but you can test prior years to see what actual levels were. Basically the controls lie in the A/R department.

Answer 2

permit's see... a million. fireplace all women instructors thinking the Bible says that girls shall no longer instruct over a guy. 2. Make the Bible the only textbook allowed. 3. Stone sinners. this implies every physique who lies, steals, commits adultery(which, biblically conversing, potential lots as being with the choice intercourse unchaperoned), worships graven pictures(this implies not greater drooling over fascinating Hollywood stars etc), covets(so in case you go with some thing somebody else has, you're performed), and so on. 4. Tear down our colleges and replace them with church homes so as a replace of going to college common to verify, you pass to church.(Eh, i think this form of is going with #3) 5. Serving biblically authorized lunches(not greater beef chops and ham sandwiches as beef is forbidden in the Bible) 6. submit the ten Commandments in the hallways(besides the fact that i've got heard some colleges particularly attempt to destroy out with this) 7. the place there have been as quickly as pictures human beings Presidents, positioned in basic terms a image of Christ. 8. in the process Lent, make fasting a call for thus see you later snacktime(for youthful teenagers) and lunches. 9. as a replace of faculty counselors, make the youngsters pass to confession. 10. For celebrating trip trips, lead them to in basic terms have fun religious ones and in basic terms the religious factors. Halloween? Buh-bye. Thanksgiving? an afternoon of prayer. Christmas? Sayonara Santa and provides. Have a Nativity competition. Easter? not greater eggs and bunnies, you get a sport of the keenness. 11. Require each and daily prayers or recitation of issues such because of the fact the Lord's Prayer. 12. as a replace of instructors, provide them monks/ministers/and so on. 13. field journeys are to monasteries, places of religious magnitude, as a replace of to someplace relaxing. 14. Separate boys and ladies instructions, make the females positioned on long hair and positioned on clothing or "modest" clothing. No makeup, no jewelry...except that's a crucifix or some thing religious, of direction. 15. Homework is composed of essays as to why different religions are going to hell and the only issues worse than yet another faith isn't any faith in any respect, or on how a individual can finally end up in hell or how they might ward off it, and so on. sixteen. earlier nutrients, each physique could say grace/table prayers, and people who do no longer pray, do no longer devour. certainly, i could probable keep going all day if i attempted...