Match each of the following terms with its definition.
_______ 1. Accounts receivable
_______ 2. Credit sales
_______ 3. Sales allowances
_______ 4. Allowance method
_______ 5. Notes receivable
_______ 6. Direct write-off method
_______ 7. Net revenues
_______ 8. Sales discounts
_______ 9. Aging method
Definitions
a. Reductions in amount owed by customers because of deficiency in products or services.
b. Formal credit arrangements evidenced by a written debt instrument.
c. Amount of cash owed to the company by customers from the sale of products or services on account.
d. Recording bad debt expense at the time the account is known to be uncollectible.
e. Sales on account to customers.
f. Reductions in amount owed by customers if payment on account is made within a specified period of time.
g. Total revenues less discounts, returns, and allowances.
h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts.
i. Estimated percentage of uncollectible accounts is greater for "old" accounts than for "new" accounts.