Chapter 15 Flashcards
1
Q
Classifying accounts receivable balances according to how long they have been outstanding is called what?
A
Aging the accounts receivable
2
Q
What is the allowance method?
A
Recording uncollectible accounts. States losses from uncollectible accounts and charges them to expense in the period when the sales are recorded
3
Q
A direct-charge off method records uncollectible accounts losses when?
A
As they occur
4
Q
The account “Allowance for Doubtful Accounts” is what kind of account?
A
A valuation account
5
Q
Does pineapple belong on pizza?
A
Yes but only on Hawaiian Pizza
