Asked by Jared Jacobson on Jul 16, 2024
Verified
Installment accounts receivable is another name for aging of accounts receivable.
Installment Accounts Receivable
Money owed to a company for goods or services purchased on a payment plan, typically including interest charges.
Aging of Accounts Receivable
A report or process that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.
- Utilize the percentage of sales approach and the aging of accounts receivable technique to estimate uncollectible accounts.
Verified Answer
SC
Sir'Quora CarrollJul 23, 2024
Final Answer :
False
Explanation :
Installment accounts receivable refers to accounts receivables that are paid in installments, while aging of accounts receivable refers to the process of categorizing accounts receivable by their age or how long they have been outstanding. The two terms are not interchangeable.
Learning Objectives
- Utilize the percentage of sales approach and the aging of accounts receivable technique to estimate uncollectible accounts.
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