Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.
Definitions:
Uncollectible Receivables
Debts owed to a company that are unlikely to be paid by the debtor, considered as a loss.
Allowance for Doubtful Accounts
A reserve for accounts receivable that may not be collectible and is considered a contra asset on the balance sheet.
Bad Debt Expense
Represents the cost associated with accounts receivable that a company deems uncollectible, affecting the net income on its income statement.
Aging of Accounts Receivable
A process of categorizing accounts receivable based on how long they have been outstanding to estimate potential uncollectible amounts.
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