Choose the term that is associated with estimating the uncollectible accounts balance existing in the accounts receivable ledger: Multiple Choice Estimating bad debts expense Showing receivables at NRV Using the aging method Estimating the required allowance for doubtful accounts All of the other statements are appropriated used in describing this process
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.
![Choose the term that is associated with estimating the uncollectible accounts balance existing in the accounts receivable ledger:
Multiple Choice
Estimating bad debts expense
Showing receivables at NRV
Using the aging method
Estimating the required allowance for doubtful accounts
All of the other statements are appropriated used in describing this process](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F900b3f96-d8cd-42d1-8d91-a5ae802a4bd2%2F50a0ce38-da5c-401b-9bd1-8f5069cadcf9%2Fe3sobl6_processed.jpeg&w=3840&q=75)
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