Chapter 15 – Accounts Receivable and Uncollectible Accounts
Chapter 15
Accounts Receivable and Uncollectible Accounts
1. When the estimate of the losses from uncollectible accounts is based on the aging method,
the primary concern is proper valuation of the accounts receivable on the balance sheet.
2. The balance of Allowance for Doubtful Accounts is deducted from the balance of Accounts
Receivable on the balance sheet.
3. When the allowance method of recognizing losses from uncollectible accounts is used, the
net value of accounts receivable on the balance sheet will more nearly reflect the amount that
will ultimately be collected.
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16. The ____________________ principle is emphasized when the estimate of the loss from
uncollectible accounts is based on sales.
17. The practice of estimating losses from uncollectible accounts before specific accounts
become uncollectible is referred to as the ____________________ method.
18. The estimated loss from uncollectible accounts can be based on net credit sales or
__________________.
