question archive Discuss the main differences between the allowance methods using income statement approach and balance sheet approach

Discuss the main differences between the allowance methods using income statement approach and balance sheet approach

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Discuss the main differences between the allowance methods using income statement approach and balance sheet approach.  Which approach do you think provides a better estimate (there is no right answer here per se, as both are acceptable per GAAP)?  If you were the CFO at a company, explain why you will pick the balance sheet approach.  

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