A Company Expects 5% of Its Newer Accounts Receivable to Be

question 148

True/False

A company expects 5% of its newer accounts receivable to be uncollectible and 20% of its older accounts to be uncollectible.If the company has $40,000 of newer accounts and $5,000 of older accounts,the total estimate of uncollectible accounts is $2,000.

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Definitions:

SOAP Documentation

A method of documentation used in healthcare to organize patient notes; it stands for Subjective, Objective, Assessment, and Plan.

Medical Information

Data related to a patient's health history, treatments, and current medical condition.

Verbal Consent

An agreement or permission for something to happen, given through spoken words rather than in writing.

Medical Record

An organized compilation of a patient’s health history, treatment, and care, maintained by healthcare professionals.