What Are Informal Communication Channels? Explain Two Types of Informal

question 102

Essay

What are informal communication channels? Explain two types of informal channels and the aspects of each that are useful for managers to understand.

---

Definitions:

Bad Debts Expense

The portion of receivables that are estimated to be uncollectible due to customer defaults.

Bad Debts Recovered

Income received from previously written-off accounts receivable that have unexpectedly been collected.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, considered as a non-recoverable loss.

Allowance Method

An accounting technique used to estimate and account for doubtful debts, reducing accounts receivable to a more realistic value.