The amount a business expects to collect from its accounts receivable; calculated as Accounts Receivable less Allowance for Bad Debts. net receivables A method in which the bad debt expense is not recognized until it has been determined that an account is uncollectible. percentage of sales method A method in which the current year's uncollectible accounts are estimated based on the relationship bad debt expense between the amount of credit sales and the amount of uncollectible accounts in prior years. direct write-off method A loss from failure to collect an account receivable.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Match the terms with the definitions.

The amount a business
expects to collect from its
accounts receivable;
calculated as Accounts
Receivable less Allowance
for Bad Debts.
net receivables
A method in which the bad
debt expense is not
recognized until it has been
determined that an account
percentage of sales method
is uncollectible.
A method in which the
current year's uncollectible
accounts are estimated
bad debt expense
based on the relationship
between the amount of
credit sales and the amount
of uncollectible accounts in
prior years.
direct write-off method
A loss from failure to collect
an account receivable.
Transcribed Image Text:The amount a business expects to collect from its accounts receivable; calculated as Accounts Receivable less Allowance for Bad Debts. net receivables A method in which the bad debt expense is not recognized until it has been determined that an account percentage of sales method is uncollectible. A method in which the current year's uncollectible accounts are estimated bad debt expense based on the relationship between the amount of credit sales and the amount of uncollectible accounts in prior years. direct write-off method A loss from failure to collect an account receivable.
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