Final answer:
Three accounting issues associated with accounts receivable are recognizing, valuing, and collecting. These involve determining when to record receivables, estimating their true value, and managing the collection process effectively.
Step-by-step explanation:
The three accounting issues associated with accounts receivable are: recognizing, valuing, and collecting.
- Recognizing refers to the process of determining when to record accounts receivable, typically at the point of sale or service delivery on credit. Proper recognition ensures that revenues and associated receivables are recorded in the correct accounting period.
- Valuing involves assessing the appropriate value of accounts receivable on the balance sheet, which might include estimating and recording allowances for doubtful accounts to reflect the true collectible amount accurately.
- Collecting pertains to the actual process of receiving payment from customers. Challenges with collection can lead to increased bad debt expenses and thus require careful management.
Accounting for accounts receivable is critical to the financial health and reporting accuracy of a business.