TR = amount expected to be ............. in the future

• PAID

• COLLECTIBLE

When payment received from TR

• TR +

• TR -

Amount ESTIMATED to be UNCOLLECTIBLE =

• Impairment loss on trade receivable

• ALLOWANCE for impairment of trade receivable

ALLOWANCE for impairment of trade receivables =

• Expense

• CONTRA asset

IMPAIRMENT LOSS on trade receivable =

• other INCOME

• other EXPENSES

IMPAIRMENT LOSS on trade receivables APPEAR in statement of financial

• PERFORMANCE

• POSITION

Allowance for impairment of trade receivables is created because of

• PRUDENCE theory

• MATCHING theory

CONFIRMED uncollectible = ESTIMATED uncollectible

• TRUE

• FALSE

Debt WRITTEN OFF = debt .............. uncollectible

• CONFIRMED

• ESTIMATED

Trade receivable ...................... because of estimated uncollectible.

• INCREASE

• DECREASE