Accounts Receivable and Bad Debts Expense (Word Scramble)

1. Collections of amounts from customers who had purchased on credit are ___________ to Accounts Receivable.

2. When sales terms are FOB______________ title passes at the buyer's location.

3. The valuation account associated with Accounts Receivable is the _____________ for Doubtful Accounts.

4. When terms are 2/10, n/30, the seller is allowing a 2% _________ if the invoice is paid within 10 days.

5. Sorting the accounts receivable according to the dates of the sale invoices is the _________ of accounts receivable.

6. The percentage of ______________ method for bad debts focuses on the balance reported in the allowance account.

7. The percentage of ______ method for bad debts focuses on the expense reported on the income statement.

8. The _________ write-off method for bad debts is required for income tax purposes.

9. Accounts receivable is reported as a __________ asset.

10. Annual credit sales divided by the average balances in accounts receivable is the receivables _________________ ratio.