An Employer with 40 Full-Time Employees and 15 Part-Time Employees

question 42

True/False

An employer with 40 full-time employees and 15 part-time employees (who only work 20 hours per week) is not classed as a large employer under the Act.

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Definitions:

Uncollectible Accounts

Accounts receivable that a business has been unable to collect and deems as unlikely to be paid.

Aging of Receivables Method

An accounting technique used to estimate the amount of receivables that may not be collectible, based on the length of time they have been outstanding.

Percent of Sales Method

A financial forecasting model that estimates certain balance sheet and income statement accounts as a percentage of projected sales.

Bad Debt Expense

The amount of receivables that a company estimates it will not collect.