Basic Activities in Every Accounting Department, Including Sales Order Processing

question 62

Short Answer

Basic activities in every accounting department, including sales order processing, accounts receivable, inventory and purchasing, accounts payable, and payroll, are recorded in the _______.

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Definitions:

Credit Sales

Sales of goods or services that are paid for at a later date, extending credit to customers.

Bad Debt Expense

An expense reported by businesses to account for receivables that are no longer collectible, affecting the net income.

Allowance for Doubtful Accounts

A contra-asset account on the balance sheet, estimating the amount of receivables that are expected to be uncollectible.

Uncollectible Accounts Receivable

Debts owed to a company that are considered unlikely to be recovered, often due to the debtor's inability to pay.