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Gowns, Inc

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Gowns, Inc.uses the percentage of receivables basis to estimate its bad debts.At December 31, 2011, Gowns estimates total bad debts that will become uncollectible in the future as €4,456.The existing balance in the Allowance for Doubtful Accounts is a debit balance of €1,056.The Accounts Receivable balance at December 31, 2011 is €79,200.The cash realizable value of Accounts Receivable reported on the statement of financial position at December 31, 2011 is


Definitions:

Cost Variances

The difference between expected costs and actual costs, detailed in financial management and accounting to help identify areas of unexpected expense or efficiency.

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