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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 964 |
Essay's paper body
Alcatel was able to manage some of these risks and generate cash immediately by selling a portion of their receivables to banks and financial firms. Other steps that can be taken to manage the risk of uncollectible accounts include: requiring risky customers to provide letters of credit or bank guarantees, requiring particularly risky customers to pay cash on delivery, asking potential customers for references from banks and suppliers to determine their payment history, and continually checking the financial health of regular customers...
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Allowance For Doubtful Accounts (Trade Receivable)
4) Write-offs ? 115 ? 928 Dec. 31, 2001
279 3) Bad Debt
1,092 Dec. 31, 2002
Trade Receivables - Gross
Dec. 31, 2001 9,033 19,657 2) Collections
1) Sales 16,547 115 4) Write-offs
Dec. 31, 2002 5,808
Account Titles Debit Credit
1 Trade Receivables - Gross ? 16,547
Sales Revenue ? 16,547
(Recorded Sales)
2 Cash 19,657
Trade Receivables - Gross 19,657
(Collection of Trade Receivables)
3 Bad Debt Expense 279
Allowance for Doubtful Accounts 279
(Recorded Bad Debt Expense)
4 Allowance for Doubtful Accountants 115
Trade Receivables - Gross 115
(Write-off of Trade Receivables)
F...
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