Match the terms with the definitions.
-A concept that requires expenses to be matched with the revenues they helped to produce.
A)aging the receivables
B)allowance method
C)bad debt expense
D)direct write-off method
E)matching principle
F)net receivables
G)percentage of receivables method
H)percentage of sales method

Question

Quizplus · Accepted Answer

The matching principle requires expenses to be matched with the revenues they helped to produce.

Answer: B
 The allowance method is a method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.

Answer: C
 Bad debt expense is the expense related to uncollectible accounts.

Answer: D
 The direct write-off method is a method of accounting for bad debts that involves writing off uncollectible accounts as they become uncollectible.

Answer: F
 Net receivables is the amount of accounts receivable that are expected to be collected.

Answer: G
 The percentage of receivables method is a method of accounting for bad debts that involves estimating uncollectible accounts based on a percentage of the outstanding accounts receivable.

Answer: H
 The percentage of sales method is a method of accounting for bad debts that involves estimating uncollectible accounts based on a percentage of the sales made during the period.

Match the Terms with the Definitions