Dr. Ted Walker runs a chiropractic clinic. He typically bills his customers for services he performs and gives them about 30 days to make the payments. These amounts of money that his customers owe are called
A) allowances for doubtful accounts.
B) prepaid expenses.
C) unearned revenue.
D) intangible assets.
E) accounts receivable.

Question

Quizplus · Accepted Answer

The amounts of money that Dr. Ted Walker's customers owe him are called accounts receivable because they represent the money owed to him for services already performed but not yet paid for. Option A (allowances for doubtful accounts) relates to an estimation of the portion of accounts receivable that are not collectible, while options B (prepaid expenses), C (unearned revenue), and D (intangible assets) do not relate to the situation described in the question.

Dr Ted Walker Runs a Chiropractic Clinic