Accounts Receivable Flashcards
1
Q
What is credit sale?
A
Purchase of inventory and supplies made on account (promises)
2
Q
Uncollectible accounts are frequently called as?
A
Bad debts
3
Q
Under this technique, a specific account is removed from the accounting records at the time it is finally determined to be uncollectible
A
Direct write-off method
4
Q
It is a method only acceptable when the bad debts are immaterial in amount
A
Direct write-off method
5
Q
This arises from a variety of claims against customers and others.
A
Receivables
6
Q
This arises from sales of products or services to customers
A
Trade receivables
7
Q
This arises from other transactions and events
A
Nontrade receivables
