A Service Business Is an Organization Whose Primary Business Requires

question 64

True/False

A service business is an organization whose primary business requires interaction with customers to produce the service.

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Definitions:

Uncollectible Account

A receivable owed to a company that is considered unlikley to be paid and is written off as a loss.

Other Receivable

Amounts owed to the company from parties other than customers, typically within a short time frame.

Uncollectible Receivables

Money owed to a company that is unlikely to be paid by the debtor, leading to its classification as a bad debt.

Doubtful Accounts Expense

An estimated expense recognized in the accounting period for accounts receivable that may not be collectible, also known as a provision for bad debts.