Match each of the following terms with its definition. Terms Definitions _____ 1. Accounts receivable a. Reductions in amount owed by customers because of deficiency in products or services. _____ 2. Credit sales b. Formal credit arrangements evidenced by a written debt instrument. _____ 3. Sales allowances c. Amount of cash owed to the company by customers from the sale of products or services on account. _____ 4. Allowance method d. Recording bad debt expense at the time the account is known to be uncollectible. _____ 5. Notes receivable e. Sales on account to customers. _____ 6. Direct write-off method f. Reductions in amount owed by customers if payment on account is made within a specified period of time. _____ 7. Net revenues g. Total revenues less returns, allowances, and discounts. _____ 8. Sales discounts h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts. _____ 9. Aging method i. Estimated percentage of uncollectible accounts is greater for “old” accounts than for “new” accounts.
Match each of the following terms with its definition. Terms Definitions _____ 1. Accounts receivable a. Reductions in amount owed by customers because of deficiency in products or services. _____ 2. Credit sales b. Formal credit arrangements evidenced by a written debt instrument. _____ 3. Sales allowances c. Amount of cash owed to the company by customers from the sale of products or services on account. _____ 4. Allowance method d. Recording bad debt expense at the time the account is known to be uncollectible. _____ 5. Notes receivable e. Sales on account to customers. _____ 6. Direct write-off method f. Reductions in amount owed by customers if payment on account is made within a specified period of time. _____ 7. Net revenues g. Total revenues less returns, allowances, and discounts. _____ 8. Sales discounts h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts. _____ 9. Aging method i. Estimated percentage of uncollectible accounts is greater for “old” accounts than for “new” accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Match each of the following terms with its definition.
| Terms | Definitions |
| _____ 1. |
a. Reductions in amount owed by customers because of deficiency in products or services. |
| _____ 2. Credit sales | b. Formal credit arrangements evidenced by a written debt instrument. |
| _____ 3. Sales allowances | c. Amount of cash owed to the company by customers from the sale of products or services on account. |
| _____ 4. Allowance method | d. Recording |
| _____ 5. Notes receivable | e. Sales on account to customers. |
| _____ 6. Direct write-off method | f. Reductions in amount owed by customers if payment on account is made within a specified period of time. |
| _____ 7. Net revenues | g. Total revenues less returns, allowances, and discounts. |
| _____ 8. Sales discounts | h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts. |
| _____ 9. Aging method | i. Estimated percentage of uncollectible accounts is greater for “old” accounts than for “new” accounts. |
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