Most Business Reports Fit into Two Broad Categories

question 69

Essay

Most business reports fit into two broad categories.List and describe these two categories;then present one original example of each.

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Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.

Allowance Method

An accounting technique used to account for bad debts, estimating uncollectible accounts as an expense to the income statement and reducing accounts receivable on the balance sheet.

Allowance Method

An accounting technique used to estimate and account for bad debts by establishing an allowance for doubtful accounts.

Bad Debts Expense

An expense reported on the income statement, accounting for the estimated amount of accounts receivable that are not expected to be collected.