ACC 221 – Accounting Principles IChapter 7 NotesAccounts receivable – a receivable arising from the sale of goods or services with a written promise to paySubsidiary ledger – the detail for a number of individual items that collectively make up a single general ledgeraccountControl account – the general ledger account that is supported by a subsidiary ledgerNet realizable value – the amount a company expects to collect on an account receivableDirect write-off method – the recognition of bad debts expense at the point an account is written off asuncollectableDebit bad debts expenseCredit accounts receivable – customerAllowance method – a method of estimating bad debts on the basis of either the net credit sales of the periodor the accounts receivable at the end of the periodAllowance for doubtful accounts – a contra-asset account used to reduce accounts receivable to its netrealizable value
