BUS 210 Chapter 8 HW

BUS 210 Chapter 8 HW - Chapter 8 HW Questions 11/6/10 1....

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Chapter 8 HW 11/6/10 Questions 1. The difference is that accounts receivable is the amount customers owe on account and notes receivable is claims for which formal instruments of credit are issued as evidence of the debt. 2. Some common types of receivables are interest receivable, loans to company officers, advances to employees and income taxes receivable. 3. The essential feature of the allowance method of accounting for bad debt is estimating uncollectible accounts receivable and match them against revenue, record estimated uncollectibles as a debit to bad debt expense and an credit to allowance for doubtful accounts at the end of each period and debit actual uncollectibles to allowance for doubtful accounts and credit them to accounts receivable at the time the specific account is written off as uncollectible. 4. The cash realization value does not decrease when an uncollectible account is written off because a write off only affects balance sheets so it would remain the same.
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BUS 210 Chapter 8 HW - Chapter 8 HW Questions 11/6/10 1....

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