ACCT 504 Discussion Receivables
Receivables constitute an important line item on a company's balance sheet.
In this thread, we will discuss the accounting for receivables, the ways to estimate uncollectible accounts, and how companies manage their receivables. How do companies account for the possibility that some of their customers might not pay down the road?
Percentage of credit sales not collected = accounts receivable not collected / credit sales In contrast to the percentage of sales method ...receivable according to the length of time they have been outstanding. This is used to estimate the probability of noncollection for each category of debt.