8.01Trade Receivables

Question 1

What is Accounts Receivable Natural balance?

Answer 1

Debit

Question 2

What adds to Accounts Receivable Balance?

Answer 2

Credit Sales. (Debt)

Question 3

What is another item that adds to Accounts Receivable balance ?

Answer 3

Reinstatement of accounts written-off (Debt)

Question 4

What is the 1st thing that deducts from Accounts Receivable balance ?

Answer 4

Collections (credit)

Question 5

What is the 2nd thing that deducts from Accounts Receivable balance ?

Answer 5

Write Offs (credit)

Question 6

What is the 3rd thing that deducts from Accounts Receivable balance ?

Answer 6

Recoveries (credit)

Question 7

What is the natural balance of “Allowance for Credit Loss” ?

Answer 7

Credit

Question 8

What adds to the “Allowance for Credit Loss” account?

Answer 8

Accounts recovered (credit)

Question 9

What else adds to the “Allowance for Credit Loss” account?

Answer 9

Credit loss expense (credit)

Question 10

What deducts from “ Allowance for Credit Loss” account ?

Answer 10

Accounts written off (debit)

Question 11

What does the ending balance of “Allowance for Credit Loss” usually entail?

Answer 11

• expected uncollectible portion of accounts receivable