Examlex
Which of the following has been made a thing of the past by electronic ordering?
Allowance for Doubtful Accounts
A contra-asset account used to estimate the portion of accounts receivable that is expected to be uncollectible.
Percentage of Credit Sales Method
An accounting method used to estimate bad debt expense by applying a fixed percentage to the total credit sales of a period.
Credit Sales
Sales made by a business on credit, where payment is collected at a later date.
Bad Debt Expense
The estimated amount of receivables that a company does not expect to collect.
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