
(1)
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.
To interpret: The impairment of (€167) in 2015 in terms of how that amount would typically be described in U.S. GAAP.
(2)
At what extent does Company SA factor or securitize the accounts receivable and also describe how to find out.
(3)(a)
To indicate: The effects of accounts receivable in the period of the change.
(b)
To indicate: The effects of
(c)
To indicate: The effects of accounts receivable in subsequent periods.
(d)
To indicate: The effects of cash flow from operation in subsequent periods.
(4)
To Explain: Whether a company can change the extent to which it factors or securitizes receivables to create one-time changes in its cash flow.

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Chapter 7 Solutions
Intermediate Accounting
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