When Customer Payments Are Received and Recorded, QuickBooks Reduces the ________

question 13

Multiple Choice

When customer payments are received and recorded, QuickBooks reduces the ________ balance.

• A)Accounts Receivable
• B)Accounts Payable
• C)Undeposited Funds
• D)Checking

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Definitions:

Uncollectible Accounts

Accounts receivable that are unlikely to be paid by customers and are considered bad debts.

Cash Realizable Value

The amount of cash expected to be received from assets or receivables after accounting for discounts or allowances.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Allowance

An accounting practice that reduces the value of assets or income for the purpose of conservative financial reporting and tax savings.