Exercise 8-20 Match each word or phrase with its description below. written promise (as evidenced by a formal instrument) for amounts to be received A method of accounting for bad debes that involves estimating uncollectible accounts at the end of each period A measure of the liquidity of accounts receivable, computed by dividing net credit sales by average net accounts receivable. (0) A method of accounting for bad debts that involves charging receivable balances to Bad Debt Expense at the time recevables from a particular company are determined to be uncollectible. () Aninance company or bank that buys receivables from businesses for a fee and then collects the payments directly from the customers. ( The net amount a company expects to receive in cash from receivables. (a) The threat of noroxyment from a single large customer or class of customers that could versely affect the financial heath of the company, th A note that is not paid in full at maturity 0 A method of estimating the amount of bad debt expense whereby management establishes a percentage relationship between the amount of receivables and the expected losses from uncollectible accounts. 0 A schedule of customer balances classified by the length of time they have been paid