Identify areas where managers make estimates and assumptions

Identify areas where managers make estimates and assumptions in accounting for accounts receivable.

Determination of impairment

Determining when an account receivable should be written off

Determining which customers to extend credit to

Estimates of the salvage value

Estimates of the useful life

Estimating the allowance for accounts receivable

Solution

The areas where managers make estimates and assumptions in accounting for accounts receivable are: Determining when an account receivable should be written off Estimating the allowance for accounts receivable