Here is the list of the words and terms for this chapter:

1. The amount of accounts receivable that is expected to be collected is called __________________.
2. The procedure of classifying accounts of individual customers by age group is called ______________.

3. When using the direct write-off method, ______________ is the account used when an account receivable has been written off and is recovered in a later year than the write-off.
4. The ________________________ is a method that estimates the amount of bad debts expense based on a percentage of net credit sales.
5. The ______________________ is a method of writing off an account receivable when it is determined that an account is uncollectible. This method does not use the Allowance for Doubtful Accounts and, thus, does not follow the matching principle.
6. The __________________________ is a method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable account and the aging process.
7. ____________ is an operating expense account that estimates the amount of credit sales in a given accounting period that are expected to be uncollectible.
8. _____________________ is a contra-asset account that is subtracted from Accounts Receivable to calculate the amount of accounts receivable expected to be collected.

Transcribed Image Text:

Net Realizable Value Direct Write-off Method Bad Debt Expense Bad Debts Recovered Balance Sheet Approach Aging the Accounts Receivable Income Statement Approach Allowance for Doubtful Accounts