|Accounts Receivable and Bad Debts Expense #1||Open|
1) A company might borrow money by using its accounts receivable as ______________ for the loan.
2) To remind customers of the amount it owes, a company will mail ______________ to these customers. This document will show the open or unpaid invoices.
3) When goods are shipped FOB _____________ point, the sale and accounts receivable will occur at the seller's dock.
4) "2/10, net 30" is an example of credit __________.
5) Under the allowance method, the write-off of a bad account will involve two current ________ accounts.
6) Usually the Allowance for Doubtful Accounts will have a __________ balance.
7) The aging of accounts receivable is associated with the percentage of _____________ method for determining the amount of Bad Debts Expense.
8) The calculation of the accounts receivable turnover ratio is net credit sales divided by the ___________ balances of accounts receivable.
9) A company that is in the business of purchasing accounts receivable.
10) The allowance account to accounts receivable is a ________-asset account.
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