| A | B |
|---|
| Ageing of accounts receivable method | a method of estimating the uncollectible amount in which each customer's accountis examined and aged and each age group total ismultipled by a percentage deemed uncollectible. |
| Allowance method | a method of accounting for uncollectible accounts in which the business makes an adjustment at the end of the period for the estimated uncollectible amount. |
| book value of accounts receivable method | the amount a business can reasonably expect to collect from its charge customers. |
| direct write-off method | a method of accounting for uncollectible accounts sin which the uncollectible amount is removed from the accounts receivable subsidiary ledger and from the controlling account when the business's management decides that the account is not going to be paid. |
| installment sales | a sale in which the cusomter makes a cash down payment and a series of equal monthly payments |
| marketable securities | short-term investments that usually include government securities such as tresury bills and the securities of large corporations. |
| matching principle | an accounting principle that states that revenue for a fiscal period must be matched against the expenses incurred in earning that revenue during the period. |
| other revenue | nonoperating revenue; revenue a business receives or earns from activities utside its normal operations. |
| percentage of net sales method | a method of estmating the uncollectible amount in which the net sales amount for the period is multiplied by a certain set percentage. |
| petty cash fund | an amount of csh on hand used to make small cash payments. |
| publicly held corporation | a corporation whose stock is widely ehld, has a large market, and is usually traded on a stock exchange. |
| uncollectible accounts | an account receivable that cannot be collected. |
