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jamiebonf99 jamiebonf99
wrote...
Posts: 167
6 years ago
Why is the gross method used by the lessor in most cases instead of the net method if both
produce the same results?
Textbook 
Intermediate Accounting, Volume 2

Intermediate Accounting, Volume 2


Edition: 5th
Authors:
Read 47 times
1 Reply

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Replies
wrote...
6 years ago
In accounting the reconciliation of accounts receivable is very important. The gross
method allows for easier reconciliation because the amounts can be traced quickly back to
the subsidiary records. Under the net method it would be necessary to present value each
lease at a particular point of time in order to perform the reconciliation. Companies with
very few leases will not find this a problem. Companies with a substantial number of leases
will find this time consuming.
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