| A | B |
|---|
| aging of accounts receivable method | Estimating uncollectible accounts by classifying customer accounts according to due date and assigning an estimated uncollectible percentage to each category |
| allowance method | Matches the potential bad debt expense with the sales from the same period |
| book value of accounts receivable | The difference between the balance of the accounts receivable and the allowance for uncollectible accounts |
| direct write off method | A method that removes the accounts receivable from the subsidiary ledger and the controlling account when the business decides the accounts is no longer collectible |
| installment sales | With __________, a business sells goods or serivces and allows customers to pay for their purchases in equal monthly installments over time |
| marketable securities | Cash that is not needed for immediate operations and is invested in short term investments called |
| matching principle | The __________ of accounting requires that revenue for a fiscal period be matched against the expenses incurred in earning that revenue during the same period |
| other revenue | money that a business earns or receives form activities outside its normal operations |
| percentage of net sales | A method for estimating uncollectible accounts that assumes a certain percentage of this year's net sales will be uncollectible |
| change fund | An amount of money that is used to make change in cash transactions |
| publicly held corporation | A(n) _______ is one whose stock is widely held, has a large market and is usually traded on a stock exchange |
| uncollectible accounts | accounts receivable that cannot be collected and that become an expense of the business |
| petty cash | cash a business keeps on hand with which to make small cash payments |
