40
Chapter 2
Accounting for Receivables
AS-9 (
3
)
What would cause the AFDA account to have a debit balance?
AS-10 (
7
)
What is a dishonoured note? What happens to the balance of notes receivable once the note
is dishonoured?
AS-11 (
3
)
Which method is best for estimating bad debt: the income statement method or the balance
sheet method?
AS-12 (
1
)
What are the advantages and disadvantages to a company that sells on credit?
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