Question

Drag the words into the correct boxes - An amount owed by a customer who has purchased the company's product or Percentage-of-receivables approach Accounts Receivable service. Allowance for bad debts - The amount of cash that a company expects to collect from its total accounts Allowance Method receivable. - The expense resulting from the inability to collect accounts receivable. Bad Debt Expense Percentage-of-sales approach Net realizable value Aging Schedule Direct Write-Off Method - Method in which bad debt expense is recorded when a company determines that a receivable is uncollectible and removes it from its records. - Method in which companies use two entries to account for bad debt expense - one to estimate the expense and a second to write off the receivables. - The dollar amount of receivables that a company believes will ultimately be uncollectible. - Method that estimates bad debt expense as a percentage of sales. Also known as the income statement method. - Method that estimates bad debt expense as a percentage of receivables. - A listing of accounts receivables by their ages.

Answer 1

The correct matching is as follows:

An amount owed by customer – Accounts receivable

Cash expected – Net realizable value

Expense – Bad Debts expense

Removes it from records – Direct write off method

Method to use two entries – Allowance method

Utlimately be incollectible – Allowance for bad debts

% of sales – Percentage of sales approach

% of receivable - % of receivables approach

A listing – Aging Schedule