Examlex
INSTRUCTIONS for questions 112-117: Match each description below with the term it best describes.
-Standing "at arm's length"
Uncollectible
Refers to accounts receivable that a company has deemed to be uncollectable and is likely to write off as a bad debt.
Direct Write-off Method
A method of accounting for bad debts in which companies write off receivables when they determine they are uncollectible.
Days' Sales in Receivables
A financial metric that measures the average number of days it takes for a company to collect payments from its credit sales.
Aging the Receivables
The process of categorizing accounts receivable according to the length of time an invoice has been outstanding.
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