The cost to the seller that arises from the failure to collect from customers who were extended credit called:

Question

Quizplus · Accepted Answer

The cost described in the question is known as an uncollectible-account expense, as it arises from customers failing to pay their credit accounts, resulting in bad debts for the seller. The other options, such as aging-of-receivables and aging expense, are related to monitoring and analyzing accounts receivable, while direct write-off is a method of recording bad debt expenses.

The Cost to the Seller That Arises from the Failure