2B - Account Receivables & Present Value Flashcards
1
Q
If you collect on an item already written off, how does that affect the allowance for uncollectible accounts?
A
It will increase it by crediting it! Cash gets debited
2
Q
Receivable Turnover Ratio
A
Net Credit Sales / Avg Net Receivables
3
Q
of Days in Avg Receivables
A
365 / Receivable Turnover
