Brief Exercise $5-21($Static$)$ Define terms related to receivables $($LO$5-1,5-2,5-3,5-4,5-5,5-6,5-7)$

Match each of the following terms with its definition.

Definitions

a Reductions in amount owed by customers because of deficiency in products or services.

b Formal credit arrangements evidenced by a written debt instrument.

c$.$ Amount of cash owed to the company by customers from the sale of products or services on account.

d$.$ Recording bad debt expense at the time the account is known to be uncollectible.

e$.$ Sales on account to customers

f$.$ Reductions in amount owed by customers if payment on account is made within a specified period of time

g$.$ Total revenues less returns, allowances, and discounts.

h$.$ Recording an adjusting entry at the end of each period for the estimate of future uncollectible accounts

Estimated percentage of uncollectible accounts is greater for "old" accounts than for "new" accounts