The Cost to the Seller That Arises from the Failure

question 107

Multiple Choice

The cost to the seller that arises from the failure to collect from customers who were extended credit called:

• A)aging-of-receivables.
• B)uncollectible-account expense.
• C)direct write-off.
• D)aging expense.

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Definitions:

Payee

The side in a financial exchange that is given the payment.

Bank

A financial institution licensed to receive deposits and provide loans, along with offering various other financial services.

Postage Expense

The cost incurred by a business for sending mail, packages, or parcels through the postal service or courier companies.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers to maintain control.