71) Receivables are monetary claims against others.
72) Two major types of receivable include: account receivables and notes payable.
73) One method of establishing internal controls over receivables is to establish a bank lock-box.
74) The uncollectible-account is an expense associated with the failure to collect receivables.
75) One of the benefits of extending credit to customers is the possibility of increased sales.
76) For good internal control over cash, the handling of cash and the recordkeeping for receivables should be separated.
77) Net accounts receivable is equal to accounts receivable less the allowance for uncollectible accounts.
78) The best way to account for bad debts is to use the allowance method.
79) Many companies use both the percentage-of-sales and the aging-of-accounts-receivable methods together.
80) Under the allowance method, the entry to record the estimated bad debts for the period includes a credit to Accounts Receivable.