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Topic: Business
Number of pages / Number of words: 6 / 1677
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Consistency entails using the same accounting policies from year to year within a firm, thus if Chan and Baaz were to be consistent, they would continue to establish an allowance for doubtful accounts based on specific identification of problem accounts because that is what they have always done historically...


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In regards to uniform, Chan and Baaz should look to other companies within the industry with similar transactions and similar circumstances and follow the accounting treatments they apply.

Subsequent amounts that are recovered from accounts previously considered uncollectable should be credited to income in the period of recovery; or, if the account was charged against an allowance for doubtful accounts, the recovery should be credited to the allowance for doubtful accounts...


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