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