Trade Receivables
      1. What is the valuation basis for accounts receivable on the balance sheet?  Explain.
      2. Explain the direct write off method of accounting for bad debts.  Is this method an acceptable accounting procedure?
      3. What is the allowance method of accounting for bad debts?
      4. Explain the allowance method based on sales.  What is it that is being estimated under this approach?
      5. Discuss the allowance method based on an analysis of accounts receivable?
      6. Why would there likely be a balance in the allowance for doubtful accounts prior to the current year's adjustment?
      7. Why would it be important to classify receivables as to source?.

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