If a Debt Owed by a Customer Is Not Large

question 15

True/False

If a debt owed by a customer is not large and the customer is in financial difficulty,negotiating a payment plan or even writing off the debt may be more practical than spending money to try to collect on the account.

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Definitions:

Journal Entry

A record of a business transaction in an accounting ledger that includes the accounts and amounts to be debited and credited.

Account Number

A unique identifier assigned to an account that enables transactions and tracking.

Debit

A transaction recorded in accounting that leads to a rise in a company's assets or a reduction in its liabilities on the balance sheet.