answer the following
communication case 7-1 :
you have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the command should use in some key areas. in the areas of recievables, the company president doesnt understand your recommendation to use the allowance method for uncollectible accounts. she stated, “financial statements should be based on objectives data rather than the guesswork required for the allowances method. besides, since my collectibles are fairly constant from period to period, with significat variations occuring infrequently, the direct write-off method is just as good as the allowance method.”
draft a reponse in the form of a memo to the president in support of your recommendation for the company to use the allowance method.
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