If the maker of a promissory note fails to pay the note on the due date, the note is said to bea.displacedb.disallowedc.discountedd.dishonored If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account as uncollectible? a.Bad Debt Expenseb.Uncollectible Accounts Receivablec.Accounts Receivabled.Allowance for Doubtful Accounts Selling receivables is calleda.sold receivablesb.factoringc.sales revenued.a facto
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
If the maker of a promissory note fails to pay the note on the due date, the note is said to bea.displacedb.disallowedc.discountedd.dishonored
If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account as uncollectible?
a.Bad Debt Expenseb.Uncollectible Accounts Receivablec.Accounts Receivabled.Allowance for Doubtful
Selling receivables is calleda.sold receivablesb.factoringc.sales revenued.a facto
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