| Accounts Receivable (Trade Receivables, Receivables) | Open accounts owed to the business by trade customers.
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| Aging of Accounts Receivable Method | Estimates uncollectible accounts based on the age of each account receivable.
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| Allowance for Doubtful Accounts (Allowance for Bad Debts, Allowance for Uncollectible Accounts) | Contraasset account containing the estimated uncollectible accounts receivable.
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| Allowance Method | Bases bad debt expense on an estimate of uncollectible accounts.
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| Bad Debt Expense (Doubtful Accounts Expense, Uncollectible Accounts Expense, Provision for Uncollectible Accounts) | Expense associated with estimated uncollectible accounts receivable.
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| Bank Reconciliation | Process of verifying the accuracy of both the bank statement and the cash accounts of a business.
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| Bank Statement | Monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits, and a running bank balance.
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| Cash | Money or any instrument that banks will accept for deposit and immediate credit to the company's account, such as a check, money order, or bank draft.
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| Cash Equivalents | Short-term investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikely to change.
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| Credit Card Discount | Fee charged by the credit card company for its services.
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| Internal Controls | Processes by which a company provides reasonable assurance regarding the reliability of the company's financial reporting, the effectiveness and efficiency of its operations, and its compliance with applicable laws and regulations.
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| Notes Receivable | Written promises that require another party to pay the business under specified conditions (amount, time, interest).
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| Percentage of Credit Sales Method | Bases bad debt expense on the historical percentage of credit sales that result in bad debts.
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| Sales (or Cash) Discount | Cash discount offered to encourage prompt payment of an account receivable.
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| Sales Returns and Allowances | Reduction of sales revenues for return of or allowances for unsatisfactory goods.
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