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Accounting

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Allowance for Doubtful Accounts Analysis Figure 1: Allowance for Doubtful Accounts Changes Chevron Cisco Coca-Cola Dow Microsoft Verizon 2,000 2.000 1,000 1,000 Value in s Ending Balance in $ 0 O 1000 1.000 Bad Debt Exp Beg Balance Write-offs Chrg to Other Ending Balance Figure 2: Compare Bad Debt Expense (BDE) to Write-offs (Wo) 18.22 15 BDE Ratio 7.79 1.92 1.42 17.00 0.83 -0.35 Chevron Cisco Coca-Cola Dow Microsoft Verizon Figure 3: Compare Beginning Allowance for Doubtful Accounts (BADA) to Write-offs (WO) Chevron Cisco Coca-Cola Dow Microsoft Verizon 121.2 119.3 100 BADA/WO Ratio 541 50 46,6 35.2 23.8 10.8 41 5.7 63 3.8 2.4 5.3 3.9 3.7 0.7 0.9 10 2015 TO 2018 2016 TE BIO 2015 BE 2016 2018 Se 2018 Compare Verizon's allowance for doubtful accounts, bad debt expense and write-off values to the other companies on the dashboard. How could the company's customer base affect their values? Compare Pasewark and Riley's two techniques in assessing allowance for doubtful accounts. What can be concluded from Pasewark and Riley's ratios? BITT I. O Word's) Using Figure 3 what two companies have the most inconsistent beginning allowance for doubtful accounts to write-off ratios? What factors have contributed to this trend? What conclusions can be drawn from the trends? B IT, TIE 1 T Wordle o C Which company is showing an increasing trend in the beginning allowance for doubtful accounts, bad debt expense and ending allowance for doubtful accounts? O Cisco O Coca-Cola Microsoft O Chevron Which of the following statements are true? Verizon has the largest amount of bad debt expense O Microsoft has decreasing ending allowance for doubtful accounts O Cisco has increasing ending allowance for doubtful accounts Coca-Cola has increasing bad debt expense values Based on Pasewark and Riley's technique on evaluating bad debt expense to write-off, what can be concluded from Figura 22 Based on Pasewark and Riley's technique on evaluating bad debt expense to write-off, what can be concluded from Figure 2? O Chevron is underestimating its collection problem O Microsoft is estimating its collection problem appropriately O Verizon is overestimating its collection problem Coca-Cola is estimating its collection problem appropriately Based on Pasewark and Riley's technique on evaluating beginning allowance for doubtful accounts to write-offs, what can be concluded from Figure 3? O Chevron has increasing write-off values O Verizon is overestimating its allowance for doubtful accounts O Chevron has a consistent allowance for doubtful accounts and write off relationship Coca-Cola has an inconsistent allowance for doubtful accounts and write-off relationship Allowance for Doubtful Accounts Analysis Figure 1: Allowance for Doubtful Accounts Changes Chevron Cisco Coca-Cola Dow Microsoft Verizon 2,000 2.000 1,000 1,000 Value in s Ending Balance in $ 0 O 1000 1.000 Bad Debt Exp Beg Balance Write-offs Chrg to Other Ending Balance Figure 2: Compare Bad Debt Expense (BDE) to Write-offs (Wo) 18.22 15 BDE Ratio 7.79 1.92 1.42 17.00 0.83 -0.35 Chevron Cisco Coca-Cola Dow Microsoft Verizon Figure 3: Compare Beginning Allowance for Doubtful Accounts (BADA) to Write-offs (WO) Chevron Cisco Coca-Cola Dow Microsoft Verizon 121.2 119.3 100 BADA/WO Ratio 541 50 46,6 35.2 23.8 10.8 41 5.7 63 3.8 2.4 5.3 3.9 3.7 0.7 0.9 10 2015 TO 2018 2016 TE BIO 2015 BE 2016 2018 Se 2018 Compare Verizon's allowance for doubtful accounts, bad debt expense and write-off values to the other companies on the dashboard. How could the company's customer base affect their values? Compare Pasewark and Riley's two techniques in assessing allowance for doubtful accounts. What can be concluded from Pasewark and Riley's ratios? BITT I. O Word's) Using Figure 3 what two companies have the most inconsistent beginning allowance for doubtful accounts to write-off ratios? What factors have contributed to this trend? What conclusions can be drawn from the trends? B IT, TIE 1 T Wordle o C Which company is showing an increasing trend in the beginning allowance for doubtful accounts, bad debt expense and ending allowance for doubtful accounts? O Cisco O Coca-Cola Microsoft O Chevron Which of the following statements are true? Verizon has the largest amount of bad debt expense O Microsoft has decreasing ending allowance for doubtful accounts O Cisco has increasing ending allowance for doubtful accounts Coca-Cola has increasing bad debt expense values Based on Pasewark and Riley's technique on evaluating bad debt expense to write-off, what can be concluded from Figura 22 Based on Pasewark and Riley's technique on evaluating bad debt expense to write-off, what can be concluded from Figure 2? O Chevron is underestimating its collection problem O Microsoft is estimating its collection problem appropriately O Verizon is overestimating its collection problem Coca-Cola is estimating its collection problem appropriately Based on Pasewark and Riley's technique on evaluating beginning allowance for doubtful accounts to write-offs, what can be concluded from Figure 3? O Chevron has increasing write-off values O Verizon is overestimating its allowance for doubtful accounts O Chevron has a consistent allowance for doubtful accounts and write off relationship Coca-Cola has an inconsistent allowance for doubtful accounts and write-off relationship

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