Match the terms to the correct definition.

Allowance Method

pledging of receivables

Direct Write$-$off Method

allowance for doubtful accounts

Accounts Receivable

factoring receivable

Question $1$ options:

$123456$

Matches estimated loss from uncollectible accounts receivable against the sales the helped produce.

$123456$

Amounts due from customers for credit sales.

$123456$

Borrowing money by pledging receivables as security for a loan.

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A contra asset account that reduces accounts receivable.

$123456$

Record bad debt expense when an account is determined to be uncollectible.

$123456$

Accounts receivables are sold to a bank and the seller is charged a factoring fee.