For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, and in column 3 the financial statement on which the account balance is reported.
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Definitions:
Allowance Method
An accounting method used to estimate and deduct accounts receivable that are deemed to be uncollectible.
Uncollectible Accounts
Accounts receivable that are considered irrecoverable and are written off as a loss by a business.
Perpetual Inventory System
A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
Aging of Receivables Analysis
A method used to assess the financial health of a company's accounts receivable by categorizing outstanding invoices by their due dates.
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