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Summary Week 5 Paper ACC 205.docx Comparative Financial Statement Analysis ACC 205: Principles of Accounting I Company Overview Coca-Cola is the worlds largest beverage company with over 500 nonalcoholic brands of drinks. The headquarters for Coca-Cola is $7.49
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Summary Week 5 Paper ACC 205.docx Comparative Financial Statement Analysis ACC 205: Principles of Accounting I Company Overview Coca-Cola is the worlds largest beverage company with over 500 nonalcoholic brands of drinks. The headquarters for Coca-Cola is
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Ash
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Ashford University
Week 5 Paper ACC Comparative Financial Statement Analysis ACC 205: Principles of Accounting I Company Overview Coca-Cola is the worlds largest beverage company with over 500 nonalcoholic brands of drinks. The headquarters for Coca-Cola is in Atlanta, Georgia. The company was started in 1886...
week 5 paper acc 205docx comparative financial statement analysis acc 205 principles of accounting i company overview coca cola is the worlds largest beverage company with over 500 nonalcohol
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Financial Statement Analysis 1
Comparative Financial Statement Analysis
ACC 205: Principles of Accounting I
Company Overview
Coca-Cola is the worlds largest beverage company with over 500 nonalcoholic
brands of drinks. The headquarters for Coca-Cola is in Atlanta, Georgia. The company
was started in 1886(United States and Securities Exchange Commission, 2017). Dr.
, Financial Statement Analysis 2
Pepper & PepsiCo would be its biggest competitors. Dr. Pepper which is now combined
with Keurig and now named KeurigDrPepper as of 2018. It currently has annual revenue
of $11 billion dollars. It is the 8th largest beverage company in the world(Keurig Dr
Pepper, Inc., 2018). PepsiCo has annual revenue of $7 billion dollars. You would think it
is mostly a beverage company but only 48% of it is beverage and the other 52% in the
food industry. PepsiCo was incorporated in Delaware in 1919 and reincorporated in
North Carolina in 1986. Brands included with the PepsiCo are Lays, Gatorade, Quaker
just to name a few(PepsiCo, 2016).
Comparison of Accounting Methods
Now to compare the different accounting methods we look at the difference
between the allowance method and the direct write off method for accounts receivable.
The allowance method “companies still write off that are uncollectable. Instead of
recording a debit to Bad Debt Expense as it is done with the direct write off method, the
company will record a debit to Allowance for Bad Debt. Bad Debt Expense is not debited
when a company writes off an account receivable when using the allowance method
because the company has already recorded the bad debt expense as an adjusting entry.
The entry to write off an account under the allowance method has no effect on net income
at the time of entry”(Miller-Nobles, Mattison, & Matsumura, 2018). The direct write off
method is mainly only used by small non-public companies. It is used for uncollectible
receivables in which the company records bad debts expense when a customers account
receivable is uncollectible. The method used by the Coca-Cola company is the allowance
method. The method used by Dr. Pepper is the allowance method and finally the method
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