Match the Term and Its Definition

question 28

Essay

Match the term and its definition.There are more definitions than terms.
Terms
1____ .Net Realizable Value
2____ .Percentage of Credit Sales Method
3____ .Allowance for Doubtful Accounts
4____ .Principal
5____ .Write-Off
6____ .Aging of Accounts Receivable
7____ .Credit Terms
8____ .Factoring
Definitions
A.How much money you can expect to earn over a period of time selling your goods.
B.The length of the credit period and any discounts offered for prompt payment.
C.A method of estimating uncollectible debts by forecasting the probability of not collecting late accounts.
D.Selling accounts receivable to another company for immediate cash.
E.The account in which the estimated amount of accounts receivable expected to be uncollectible is recorded.
F.Also known as net accounts receivable.
G.A method of estimating uncollectible debts by looking at the historical average of credit sales not collected.
H.The amount of money lent.
I.Credit that a company receives when one good is exchanged for another.
J.The interest earned by money over a period of time.
K.When a company increases the amount of accounts receivable by adding the interest earned as accounts age without being collected.
L.The process of removing specific customers' accounts deemed uncollectible.

---

Definitions:

Deposits

Funds placed into banking institutions for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.

Reserves

Funds or materials set aside for future use or to cover unexpected emergencies; in banking, refers to the amount of money banks are required to hold as a safety measure.

Government Bond

A debt security issued by a government to support government spending, often considered a low-risk investment.

Market Rate

The prevailing interest rate available in the marketplace for loans or deposits of a specific maturity.