1. Notes and accounts receivable that result from sales transactions are often called ___________________ receivables. 2. Two...
Question:
1. Notes and accounts receivable that result from sales transactions are often called ___________________ receivables.
2. Two accounting problems associated with accounts receivable are (1) ______________
and (2) ________________ accounts receivable.
3. The net amount expected to be collected in cash from receivables is the ________________
4. When credit sales are made,_____________ Expense is considered a normal and necessary risk of doing business on a credit basis.
5. The two methods used in accounting for uncollectible accounts are the _____________method and the ______________ method.
6. Allowance for Doubtful Accounts is a ______________ account which is ____________from Accounts Receivable on the balance sheet.
7. When the allowance method is used to account for uncollectible accounts, _________ is debited when an account is determined to be uncollectible.
8. The ________________ basis of estimating uncollectibles normally results in the best approximation of _____________ value.
9. Collection of a note receivable vAll result in a credit to _________________for the face value of the note and a credit to __________________
10. A note that is not paid on the maturity date is said to be ____________________.
11. A concentration of ____________ is a threat of nonpayment from a single customer or class of customers.
12. The ratio used to assess the liquidity of accounts receivable is the ___________ ratio.
13. A finance company or bank that purchases receivables from businesses is known as a ______
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann