Albert Robins Company, Inc.—Trade Receivables

Abstract

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.

Citation

Haskins, M.E. and Bray, R. (2017), "Albert Robins Company, Inc.—Trade Receivables", . https://doi.org/10.1108/case.darden.2016.000014