Measuring receivables Flashcards
1
Q
What are the carrying amount of receivables?
A
expected cash to be received
2
Q
What is “allowance for doubtful debits”?
A
the amount owing must be reduced by the amount expected to be uncollectable using an account
3
Q
How are receivables shown on balance sheets?
A
receivables are usually shown at their net amount
Net Amount = gross value - allowances for doubtful debits
