ch08 Receivables 财务会计英文版课件.pptVIP

Accounts Receivable—used for selling merchandise or services on credit, and normally expected to be collected in a relatively short period. Notes Receivable—used to grant credit on the basis of a formal instrument of credit, called a promissory note. Other Receivables—include interest receivable, taxes receivable, and receivables from officers and employees. Separating the Receivable Functions This method is consistent with the matching principle. Management makes an estimate each year of the portion of accounts receivable that may not be collectible. Uncollectible Accounts Expense is debited