Accounts Receivable and Uncollectible Accounts

FLASHCARDS

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

Allowance method

Reinstate

To put back or restore an accounts receivable amount that was previously written off

Reinstate

Valuation account

An account, such as Allowance for Doubtful Accounts, whose balance is revalued or reappraised in light of

reasonable expectations

Valuation account

Direct charge-off method

A method of recording uncollectible account losses as they occur

Direct charge-off method

Aging the accounts receivable

Classifying accounts receivable balances according to how long they have been outstanding

Aging the accounts receivable

For additional reinforcement of accounting terms, visit the

crossword puzzle on this Web site.