Examlex
Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________.
Average Collection Period
The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.
Allowance for Doubtful Accounts
An estimation of accounts receivable that a company does not expect to collect, appearing as a contra-asset account on the balance sheet.
Net Credit Sales
The net income generated from credit sales after subtracting any returns or allowances.
Aging Analysis
A method used to estimate the collectability of accounts receivable by categorizing receivables by their age (time outstanding).
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