Accounting for accounts receivables

Definition and explanation: Factoring accounts receiable is a common practice among small companies which means selling accounts receivable to a financial ……

The accounting for notes receivable is simple. When a note is received from a receivable, it is recorded with the face value of the note by making the ……

Definition and explanation: Note receivable is a formal promissory note that is written by a debtor in favor of a creditor. It is a legal document ……

Under direct write-off method the uncollectible accounts expense is recognized when a receivable is actually determined to be uncollectible. Unlike allowance ……

The income statement approach estimates uncollectible accounts using total credit sales for the period. Under this approach, some percentage of the total ……

The balance sheet approach of estimating uncollectible accounts classifies accounts receivable into various groups on the basis of their age. According ……

A receivable that has previously been written off may be recovered in full or in part. It is known as recovery of uncollectible accounts or recovery of ……

The allowance method of recognizing uncollectible accounts expense follows the matching principle of accounting i.e., it recognizes uncollectible accounts ……

Where selling goods on credit is a good way to expand business in terms of sales and profit, it also involves a risk of uncollectibles. Uncollectible ……

The journal entry for recording accounts receivable When goods are sold on credit, accounts receivable account is debited and sales account is credited. ……