Write the Correct Meaning for CRP

question 32

Short Answer

Write the correct meaning for CRP:

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Aging of Receivables Analysis

A method used to assess the financial health of a company's accounts receivable by categorizing outstanding invoices by their due dates.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collected.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, recognized as an expense.