Match each description to the appropriate term (a-i).
-A contra asset that represents the amount of estimated uncollectible receivables
A)Accounts receivable turnover
B)Net realizable value
C)Accounts receivable
D)Aging the receivables
E)Receivables
F)Direct write-off method
G)Allowance for doubtful accounts
H)Bad debt expense
I)Notes receivable

Question

Quizplus · Accepted Answer

Allowance for doubtful accounts is a contra asset that represents the estimated amount of uncollectible receivables.

Answer: B
 Net realizable value is the value of the receivables after deducting the allowance for doubtful accounts.

Answer: C
 Accounts receivable are amounts owed by customers for goods or services already provided.

Answer: D
 Aging the receivables is the process of analyzing the age of account receivables to estimate the likelihood of collection.

Answer: E
 Receivables are assets representing amounts due to a company, which can include accounts receivable, notes receivable, and other forms of debt.

Answer: F
 The direct write-off method is a method of accounting for bad debts that directly charges the uncollectible amount to expense at the time it is determined to be uncollectible.

Answer: H
 Bad debt expense is the expense recognized when customers do not pay their accounts receivable.

Answer: I
 Notes receivable are written promises to pay a certain amount on a future date.

Answer: A
 Accounts receivable turnover is a measure of how many times a company collects its average accounts receivable balance during a period.

Match Each Description to the Appropriate Term (A-I)