Match each of the following terms with its definition.TermsDefinitions_____ 1. Accounts receivablea. Reductions in amount owed by customers because of deficiency in products or services._____ 2. Credit salesb. Formal credit arrangements evidenced by a written debt instrument._____ 3. Sales allowancesc. Amount of cash owed to the company by customers from the sale of products or services on account._____ 4. Allowance methodd. Recording bad debt expense at the time the account is known to be uncollectible._____ 5. Notes receivablee. Sales on account to customers._____ 6. Direct write-off methodf. Reductions in amount owed by customers if payment on account is made within a specified period of time._____ 7. Net revenuesg. Total revenues less returns, allowances, and discounts._____ 8. Sales discountsh. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts._____ 9. Aging methodi. Estimated percentage of uncollectible accounts is greater for “old” accounts than for “new” accounts.

Receivable: It can be defined as an asset account that is presented on the balance sheet of the…

Answered: Match each of the following terms with…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 4EB: For each of the following transactions, state which special journal (Sales Journal, Cash Receipts...

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Match each of the following terms with its definition.

Terms	Definitions
_____ 1. Accounts receivable	a. Reductions in amount owed by customers because of deficiency in products or services.
_____ 2. Credit sales	b. Formal credit arrangements evidenced by a written debt instrument.
_____ 3. Sales allowances	c. Amount of cash owed to the company by customers from the sale of products or services on account.
_____ 4. Allowance method	d. Recording bad debt expense at the time the account is known to be uncollectible.
_____ 5. Notes receivable	e. Sales on account to customers.
_____ 6. Direct write-off method	f. Reductions in amount owed by customers if payment on account is made within a specified period of time.
_____ 7. Net revenues	g. Total revenues less returns, allowances, and discounts.
_____ 8. Sales discounts	h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts.
_____ 9. Aging method	i. Estimated percentage of uncollectible accounts is greater for “old” accounts than for “new” accounts.

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