Amounts owed by customers on account. [ Choose ] The analysis of customer balances by the [ Choose ] length of time they have been unpaid. A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period. [ Choose] >
Amounts owed by customers on account. [ Choose ] The analysis of customer balances by the [ Choose ] length of time they have been unpaid. A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period. [ Choose] >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
![Match each definition with its correct term:
Amounts owed by customers on account.
[ Choose ]
The analysis of customer balances by the
length of time they have been unpaid.
[ Choose ]
A method of accounting for bad debts that
involves estimating uncollectible accounts at
the end of each period.
[ Choose ]
An expense account to record uncollectible
[ Choose ]
receivables.
The net amount a company expects to
[ Choose ]
receive in cash.
A method of accounting for bad debts that
involves expensing accounts at the time they
[ Choose ]
are determined to be uncollectible.
A note that is not paid in full at maturity.
[ Choose ]
The party in a promissory note who is making
[ Choose ]
the promise to pay.
Written promise (as evidenced by a formal
[ Choose ]
instrument) for amounts to be received.
Various forms of nontrade receivables, such
[ Choose ]
as interest receivable and income taxes
refundable.
The party to whom payment of a promissory
[ Choose ]
note is to be made.
Management estimates what percentage of
[ Choose ]
receivables will result in losses from
uncollectible accounts.
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb740a2b9-45d2-4a76-b926-8ccc48491ca4%2F8a1adb2b-519e-4d24-a48b-76a3373e7c5f%2F7ohdpom_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Match each definition with its correct term:
Amounts owed by customers on account.
[ Choose ]
The analysis of customer balances by the
length of time they have been unpaid.
[ Choose ]
A method of accounting for bad debts that
involves estimating uncollectible accounts at
the end of each period.
[ Choose ]
An expense account to record uncollectible
[ Choose ]
receivables.
The net amount a company expects to
[ Choose ]
receive in cash.
A method of accounting for bad debts that
involves expensing accounts at the time they
[ Choose ]
are determined to be uncollectible.
A note that is not paid in full at maturity.
[ Choose ]
The party in a promissory note who is making
[ Choose ]
the promise to pay.
Written promise (as evidenced by a formal
[ Choose ]
instrument) for amounts to be received.
Various forms of nontrade receivables, such
[ Choose ]
as interest receivable and income taxes
refundable.
The party to whom payment of a promissory
[ Choose ]
note is to be made.
Management estimates what percentage of
[ Choose ]
receivables will result in losses from
uncollectible accounts.
>
![A written promise to pay a specified amount
[ Choose ]
of money on demand or at a definite time.
Amounts due from individuals and other
[ Choose ]
companies.
Notes and accounts receivable that result
[ Choose ]
from sales transactions.
>
>
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb740a2b9-45d2-4a76-b926-8ccc48491ca4%2F8a1adb2b-519e-4d24-a48b-76a3373e7c5f%2Fi21cdx9h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A written promise to pay a specified amount
[ Choose ]
of money on demand or at a definite time.
Amounts due from individuals and other
[ Choose ]
companies.
Notes and accounts receivable that result
[ Choose ]
from sales transactions.
>
>
>
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