Albert Robins Company, Inc. - Trade Receivables
13 Pages Posted: 21 Oct 2008
This case raises the question, How does a company reasonably estimate and record entries for uncollectible trade receivables and under what circumstances are receivables written off as uncollectible? The required accounting transactions for the case involve estimating a receivables allowance both as a percentage of sales and as a percentage of accounts receivable, and making specific account judgments under the direct write-off method. The subjective issues involve analyzing and assessing a company's methods of collection and accounting for bad debts.
JEL Classification: M41, G33, A20
Suggested Citation: Suggested Citation