Accounts Receivable and Uncollectible Accounts FLASHCARDS

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Accounts Receivable and Uncollectible Accounts
FLASHCARDS
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Allowance method
Allowance method
A method of recording uncollectible accounts that
estimates losses from uncollectible accounts and
charges them to expense in the period when the
sales are recorded
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Reinstate
Reinstate
To put back or restore an accounts receivable
amount that was previously written off
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Valuation account
Valuation account
An account, such as Allowance for Doubtful
Accounts, whose balance is revalued or
reappraised in light of reasonable expectations
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Direct charge-off method
Direct charge-off method
A method of recording uncollectible account
losses as they occur
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Aging the accounts receivable
Aging the accounts receivable
Classifying accounts receivable balances
according to how long they have been outstanding
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