Finance Chapter 9 Receivables

true or false: notes receivable is an other receivable false
trade receivables notes or accounts receivable that result from sales transactions
true or false: direct write off violates the matching principle true
percent of sales gives exact adjusting entry
accounts receivable turnover ratio net sales divided by average accounts receivable
number of days in sales 365 divided by accounts receivable turnover ratio
receivables all money claims against other entities
does writing off accounts affect net income? no
allowance method focuses on the balance sheet
direct writ off method focuses on the income statement
receivables that are not currently collectible are reported in the investments section of the balance sheet
factoring when a company sells their receivables to other companies
GAAP encourages which method allowance method
net realizable value accounts receivable minus allowance for doubtful accounts
the balance in allowance for doubtful accounts does not include… all accounts written off since the beginning of the year

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