Bad Debt Accounts Recommendation
1- Pete Sazich, the accountant for Moore Company, feels that all bad debts will be eliminated if credit transactions are done by credit card. He also feels that the cost of the credit cards should be added to the price of the goods. Pete feels that in the future the allowance method will be totally eliminated. You make the call. Writea letter stating your opinion regarding this matter to Pete’s boss. Do you agree or disagree with their recommendations for Pete?