An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid , the greater the probability that it will eventually be collected . Question 2
Allowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet . Question 3
Under the allowance method , Bad Debt Expense is debited when an account is deemed uncollectible and must be written off . Question 4
Interest on a 6-month , 10 percent , $ 10,000 note is calculated by multiplying $ 10,000 ´ 0.10 ´ 6 / 12 . Question 5
If a company has significant concentrations of credit risk , it must discuss this risk in the notes to its financial statements . Question 6
Interest is usually associated with Question 7
On January 15 , Nifty Company sells merchandise on account to Martinez Associates for $ 3,000 with terms 3 / 10 , n / 30 . On January 20 , Martinez returns merchandise worth $ 600 to Nifty . On January 24 , payment is received from Martinez for the balance due . What is the amount of cash received ? Question 8
The expense recognition Question 9