Shelly is having to review her A/R for her practice. She has a patient who earlier in the year was written off as a bad debt. That patient has now paid on the bad debt and she now has to record it. Shelly wants to minimize these types of transactions and is looking into better ways the company can perform direct write-offs.
1. Share and describe some ideas Shelly can use to minimize these types of transactions.
2. Describe some advantages and disadvantages of making improvements to your accounts receivable.
3. Considering the need to plan for the operating cash needs of the practice, discuss how your plan could improve on the collections process.
Account receivable is the account prepared for the business's supply of goods and services to the customer. And the payment is still due. It is shown on the company's balance sheet as an asset.
Answer and Explanation: 1
Share and describe some ideas Shelly can use to minimize these transactions.
The best and most suggested way to minimize these transactions is to...
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fromChapter 7 / Lesson 1
Learn what accounts receivables are and why they're important. Understand the definition of accounts receivable, look at different types of accounts receivable, and examine examples.