Financial Accounting Discussion Questions

**does not need to be in APA or no min word count**

DQ# 1

  • How are bad debts accounted for under the direct write-off method?  What are the disadvantages of this method?
  • Why would you select the percentage of sales method for calculating doubtful accounts instead of the percentage of receivables method?  What are disadvantages and advantages of each of these methods of accounting for bad debts?


  • What are the basic/important issues related to accounting for intangible assets?
  • Pendergrass Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct?  Explain why (or why not).

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