Question

Which of the following should be recorded in the category "trade receivables?"a. advances to officers and employees.b. income tax refunds receivable.c. Open accounts resulting from short-term extensions of credit to customers.d. claims against insurance companies for casualties sustained.

Answer 1

Answer:

Open accounts resulting from short-term extensions of credit to customers

Explanation:

Trade receivables are amounts billed by a business to its customers when it delivers goods or services to them in the ordinary course of business. These billings are typically documented on formal invoices, which are summarized in an accounts receivable aging report.