Analysis of Accounts Receivable Analysis of accounts receivable involves two issues: the relative size of accounts receivable and the adequacy of the allowance for uncollected accounts (Murray, Neumann, & Elgers, 2000, p. 220). Size-The size of accounts receivable is usually assessed relative to the amount of credit sales. This seems appropriate because credit sales give rise to accounts receivable (accounts receivable earns no return after the discount period has expired). Most firms do not separately disclose credit sales, …showed first 75 words of 2360 total…

…showed last 75 words of 2360 total…credit and collections. Business Credit, 102, 23-26. Reynes, R (1999, January). A Big Factor in Expansion (selling accounts receivable for a fee). Nation's Business, , . Reynes, R. (1999, January). A big factor in expansion (selling accounts receivable for a fee is a source of cash for small businesses). Nation's Business . Uncollectible accounts policy. (2000). Retrieved 5/17/01 from the World Wide Web: http://www.investopedia.com Wallis, L. (2001, March). Credit scoring: The future of decisioning in the a/r process). Business Credit.