Chapter 5, Problem 5.19BE

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
____3. Sales allowances	b.	Formal credit arrangements evidenced by a written debt instrument.
____4. Allowance method
____5. Notes receivable	c.	Amount of cash owed to the company by customers from the sale of products or services on account.
____6. Direct write-off method
	d.	Recording bad debt expense at the time the account is known to be uncollectible.
____7. Net revenues
____8. Sales discounts	e.	Sales on account to customers.
____9. Aging method	f.	Reductions in amount owed by customers if payment on account is made within a specified period of time.
	g.	Total revenues less discounts, returns, and allowances.
	h.	Recording an adjustment at the end of each period for the estimate of future uncollectible accounts.
	i.	Estimated percentage of uncollectible accounts is greater for “old” accounts than for “new” accounts.