Goal:

To support adjusting process concepts and skills learned in Chapter $8.$

Discussion:

The receivables that result from sales on account are normally accounts receivable or notes receivable. The term receivables includes all money claims against other entities, including people, companies, and other organizations. Receivables are usually a significant portion of the total current assets. Since receivables are not ahways collected, businesses need to be able to adjust for the uncollectible portions and "match" them to the periods in which the original sales were recorded.

Original Post:

Make your original post by Wednesday $11$:$59$ pum.

Answer the following questions and support your responses with detail

What are the three classifications of receivables?

What kind of an account $($asset$,$ Fiability, etc.$)$ is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?

A firm has consistently adjusted its allowance account at the end of the fiscal year by adding a fixed percent of the period's sales on account. After seven years, the balance in Allawance for Doubtful Accounts has become very large in relationship to the balance in Accounts Receivable. Give two possible explanations.

Which of the two methods of estimating uncollectibles provides for the most accurate estimate of the curnent net reslizable value of the reccivables?

Renlies.