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Unformatted text preview: approximates physical flow of goods? FIFO Types of receivables:-amounts due from individual and other companies that are expected to be collected in cash-2 accounting issues: • Recognize accounts receivable • Valuing accounts receivable 1. Direct Write off (theoretically undesirable, no matching, receivable not stated at net realizable value) 2. Allowance method (better matching, receivable stated at net realizable value) Uncollectible accounts receivable-sales on account raise the possibility of accounts not being collected LOOK AT THE SLIDES ON MOODLE...
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- Fall '08
- Accounting, net realizable value, FIFO and LIFO accounting