ACT 205 Chapter Notes - Chapter 5.2: Accounts Receivable

83 views2 pages
8 Mar 2018
School
Department
Course

Document Summary

This means the customer will receive a 2% discount if the amount owed is paid within 10 days. The amount of cash the firm expects to collect. Boosts sales by allowing customers the ability to purchase on account and pay cash later. Not all customers will pay fully on their accounts. Allowing for the possibility that some accounts will be uncollectible in the future. Accounts for events that have not yet occurred but are likely to. Amount of accounts receivable we do not expect to collect. Difference between total accounts receivable and the allowance for uncollectible accounts. Older accounts are less likely to be collected. Higher % for old accounts than new accounts. Estimating uncollectible accounts based on the percentage of accounts receivable expected not to be collected. Estimate is based off of bad debts on accounts receivable which is a balance sheet method.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions