6-receivables英语教学提纲.pptVIP

* Accounts Receivable arise from credit sales to customers. We will create a separate subsidiary accounts receivable ledger for each customer. This helps us keep track of how much each customer owes us individually. Selling on credit also creates a need to account for the bad debts that will result from customers not fulfilling their obligation to pay their Accounts Receivable. * Companies must account for the fact that some customers may not be able to pay the amounts they owe. There are two basic methods used to account for bad debts: the direct write-off method and the allowance method.