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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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