Module 7 Study Guide Flashcards
Accounts receivable
amounts that customers owe a company for goods sold and services rendered on account.
trade receivables
receivables resulting from credit sales of goods and services.
Accounts Receivable Ledger
includes information such as the customer information, the date of sale, and any terms that are associated with the sale on account.
direct write-off method
recognizes bad accounts as an expense at the point when judged to be uncollectible and is the required method for federal income tax purposes.
allowance method
provides in advance for uncollectible accounts.
Net realizable value
the amount the company expects to collect from accounts receivable.
percentage-of-sales method
estimates uncollectible accounts from the credit sales of a given period.
percentage-of-receivables method
estimates uncollectible accounts by determining the desired size of the Allowance for Uncollectible Accounts.
