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Rosa Has Learned to Bring an Umbrella with Her on Overcast

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Rosa has learned to bring an umbrella with her on overcast days, explaining "I don't want to get wet if it rains." We can explain her behavior as a form of


Definitions:

Unadjusted Trial Balance

A listing of all the accounts and their balances from the ledger, before any adjustments, used to check the arithmetic accuracy of bookkeeping.

Aging of Receivable Method

An accounting technique used to estimate uncollectible debts by analyzing the age of accounts receivable.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may ultimately not be collectible.

Bad Debts Expense

Bad debts expense represents the amount of receivables a company estimates it will not be able to collect from customers over a period.

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