Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 20

Go to the website for a company of your choice and determine how it recognizes revenue, estimates sales returns, and determines the amount of uncollectible accounts. List the revenue reported for the last two years as well as the balance in Accounts Receivable and the Allowance for Doubtful Accounts for each year. Does the change in the allowance account appear reasonable Explain your answer.