Chapter 7	Name: Click here to enter text.

Section 7.1 Notes: Fill in the blanks after reviewing Section 7.1 PowerPoint.

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Why do businesses offer credit terms?

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Even after checking a business’s credit, they still may not pay according to terms. Why?

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Which account will be debit and which will be credited when a sale on account is made?

Debit Click here to enter text.

Credit Click here to enter text.

At what point is amount owed by a customer no longer part of accounts receivable balance?

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November 15. Wrote off James Nordquist’s past due account as uncollectible, $50. Memorandum No. 21.

Debit Click here to enter text.

Credit Click here to enter text.

When an account is written off, the balance is recorded as an Click here to enter text.

When the account is later collected, the amount is recorded as Click here to enter text.

Why should the amount of uncollectible account be removed from the assets of a business?

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In the direct write off method, how is an uncollectible account closed?

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Why is the customer account reopened when cash is received for an account previously written off as uncollectible?

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