Examlex
One aspect of risk associated with the aggressive strategy's maximum use of short-term financing is the fact that changing short-term interest rates can result in significantly higher borrowing.
Accounts Receivable
Money owed to a company by its customers for sales or services on credit, considered a current asset on the balance sheet.
Allowance for Doubtful Accounts
A contra-asset account used to estimate and offset the amount of receivables that may not be collected.
Uncollectible Accounts
Accounts receivable that a company does not expect to collect due to customer defaults.
Bad Debt Expense
The estimated amount of credit sales that are not expected to be collected, representing potential loss to the company.
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