119.Listed below five terms followed by a list of : 1412685
119.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
1. Separation of dutiesHas no effect on net receivables when using the allowance method.
2. Write-off of accounts receivableIs a contra revenue account.
3. Balance sheet approachIs of vital importance for good internal control.
4. Accounts receivableIndirectly determines bad debt expense by estimating realizable value.
5. Sales returnsAre reported at their net realizable value.
120.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
1. Direct write-off methodRequires payment of principal plus interest.
2. Factoring with recourseRecognizes bad debts when accounts become uncollectible.
3. Income statement approachThe risk of uncollectibility is retained by the seller.
4. Internal controlIncludes separation of duties.
5. Interest-bearing noteBad debt expense is a percentage of credit sales.