To see each answer, press or click on the blue "Unscramble" button. If you have difficulty answering the following questions, learn more about this topic by reading our Accounts Receivable and Bad Debts Expense (Explanation).
1. Collections of amounts from customers who had purchased on credit are ___________ to Accounts Receivable.
CREDITED ICDERDTE2. When sales terms are FOB______________ title passes at the buyer's location.
DESTINATION ISNONATIEDT3. The valuation account associated with Accounts Receivable is the _____________ for Doubtful Accounts.
ALLOWANCE EAOLNWACL4. When terms are 2/10, n/30, the seller is allowing a 2% _________ if the invoice is paid within 10 days.
DISCOUNT CDNUITSO5. Sorting the accounts receivable according to the dates of the sale invoices is the _________ of accounts receivable.
AGING IGNGA6. The percentage of ______________ method for bad debts focuses on the balance reported in the allowance account.
RECEIVABLES IEALRVSEBCE7. The percentage of ______ method for bad debts focuses on the expense reported on the income statement.
SALES AELSS8. The _________ write-off method for bad debts is required for income tax purposes.
DIRECT TECDRI10. Annual credit sales divided by the average balances in accounts receivable is the receivables _________________ ratio.
TURNOVER ETOVNRURFeatured Review
"I am currently managing a family business in Thailand, which mainly concerns the import and export of frozen seafood. I became a PRO user after going through the first few chapters and finding the material to be comprehensive, answering all the questions I had as I read along and even the ones I didn't know I had. I like how detailed the material is, while still being digestible and not too time consuming. The examples later on encourage me to think about each problem as an accountant would based on what I've learnt. Since reading the first 10 chapters, I now already have an easier time making sense of financial statements issued within the company, to the point where I was able to help my accountant make decisions about how we should manage certain situations regarding intricacies of the factory. I wanted to thank AccountingCoach and the team responsible for putting this great content together as it has had a very positive impact on my life and career, and helped me make decisions with more competency and confidence." - Shahzil Y.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:
