Effectiveness of afda estimation: a study in the indonesian food and beverage industry
Companies are so rely on trade receivables aging schedule in measuring the collectability and its potential risk. The companies need to know whether the allocated allowance they have estimated is effective and whether it is subsequent for the write offs account. Therefore the companies need to define a suitable method to do the evaluation of estimated allowance and to understand the company pattern and strategies through the estimation by determining the evaluation process of both the gap analysis and the three techniques analysis.rnThis thesis focuses on comparing two analyses that could become the potential tools to evaluating the allowance for doubtful account and helping the future allowance estimation. The analysis will involve the historical data related such as bad debts expense, beginning allowance for doubtful accounts and write offs. As the result comes out, it is found that the three techniques analysis successfully represents the evaluation of the AFDA estimation process and proves to be useful for future AFDA estimation processes.
No other version available