Examlex
Total fixed costs for Threads Company are $80,000. Total costs, both fixed and variable, are $170,000 if 125,000 units are produced. The fixed cost per unit at 100,000 units would be
Uncollectible Accounts
Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss.
Direct Write-off Method
A method used in accounting to write off bad debts when they are determined to be uncollectible, impacting accounts receivable and expense accounts directly.
Recovery of Bad Debt
The process of collecting funds previously written off as uncollectible, generally resulting in an income statement gain the period it's recovered.
Percent of Sales Method
A financial forecasting approach that estimates future financial statements' items as a percentage of projected sales.
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