Receivables. Chapter 9. Learning Objectives. Describe the common classes of receivables. Describe the accounting for uncollectible receivables. Describe the direct write-off method of accounting for uncollectible receivables.
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Describe the common classes of receivables
Describe the accounting for uncollectible receivables
Describe the direct write-off method of accounting for uncollectible receivables
Describe the allowance method of accounting for uncollectible receivables
The specific customer accounts cannot be decreased, so a contra account, Allowance for DoubtfulAccounts, is credited.The Allowance Method
Note that the allowance account credited earlier is debited at the write-off, not Bad Debt Expense.The Allowance Method
Compare the direct write-off and allowance methods of accounting for uncollectible accounts
Describe the accounting for notes receivable
Answer: June 14
Describe the reporting of receivables on the balance sheet
Describe and illustrate the use of accounts receivable turnover and number of days’ sales in receivables to evaluate a company’s efficiency in collecting its receivables.