Accounts receivable are generally reflected on the balance sheet at net unrealized value. One way to estimate a company's bad debt provision is the percentage of revenue method. The allowance for uncollectibles increases the gross accounts receivable balance on the balance sheet. An aging of accounts receivable inherently assumes older receivables are less likely to be collected. Accounts receivable increasing at a slower pace than sales is a warning sign that a company is having True/False (2 points each) - write T for True or F for False to the left of each statement 1. 2. 3. 4. 5. collection problems. 6. A company with a 5-year non-interest-bearing note receivable doesn't recognize interest income until the note is paid. 7. 8. A company that chooses to record its receivables at fair value may have to book a loss. Factoring and collateralized borrowings are both ways to accelerate cash collection. _Because the LIFO vs. FIFO decision affects paper profits, it can't affect actual cash flows. _GAAP does not require the cost flow assumption to correspond to the actual physical flow of inventory. 9. 10