The Accounts Receivable Ledger Is Simply a Detailed Listing of the Same

question 25

True/False

The accounts receivable ledger is simply a detailed listing of the same information that is summarized in the accounts receivable account in the general ledger.

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are collected, or turned over, during a reporting period.

Bad Debt Expense

An expense account reflecting amounts that are expected to be uncollectible from customers' credit sales.

Bad Debt Expense

An estimated expense that represents the amount of receivables a company does not expect to collect due to customer defaults.

Allowance for Doubtful Accounts

A financial accounting provision representing the estimated amount of receivables that may not be collected.