A Person Who Makes a Completely Executory Promise,in Return for a Negotiable

question 23

True/False

A person who makes a completely executory promise,in return for a negotiable instrument,has given value for it.

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Definitions:

Bad Debt Expense

An expense reported on the income statement, representing the estimate of uncollectible accounts receivable.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable that a company does not expect to collect.

Uncollectible Receivables

Amounts due from customers that are considered unattainable and likely to never be collected.