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Case 6-1
Your friend Jennifer has a lot of experience with merging form letters and data sources,so when you have an important project to work on like this,she is the person to whom you turn with your questions.Your first hurdle to get over is the creation of the data source.
-You have started to get a little confused by the terminology because there seem to be so many new terms introduced with this concept.When you ask Jennifer for clarification,which one of the following terms does she say does not mean the same as the other three?
Uncollectible Receivables
These are amounts due to a company from its customers that are considered unlikely to be collected.
Adjusting Entry
An accounting entry made at the end of an accounting period to record unrecognized income or expenses to ensure that the accounting records are accurate.
Allowance for Doubtful Accounts
A contra-account reducing accounts receivable on a balance sheet, reflecting the amount of receivables a company believes it will not collect.
Estimated Uncollectible
The anticipated portion of receivables that a company expects not to collect.
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