Upgrade to remove ads
Only $2.99/month

Accounting Test Ch 14

Terms in this set (22)

Accounts receivable that cannot be collected
Uncollectible Accounts
Crediting the estimated value of collectible accounts to a contra account
Allowance Method
The difference between an asset's account balance and its related contra account balance
Book Value
The difference between the balance of Accounts Receivable and its conta account, Allowance for Uncollectible Accounts
Book value of accounts receivable
The amount of accounts receivable a business expects to collect
Net realizable value
A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible
Percent of sales method
A method used to estimate uncollectible accounts receivable that uses an analysis of accounts receivable to estimate the amount that will be uncollectible
Percent of accounts receivable method
Analyzing accounts receivable according to when they are due
Aging of Accounts receivable
Canceling the balance of a customer account because the customer does not pay
Writing off an account
Recording uncollectible accounts expense only when an amount is actually known to be uncollectible
Direct Write-Off Method
A written and signed promise to pay a sum of money at a specified time
Promissory Note
A promissory note signed by a business and given to a creditor
Note Payable
A promissory note that a business accepts from a person or business
Note Receivable
The person or business that signs a note, and thus promises to make payment
Maker of a Note
The person or business to whom the amount of a note is payable
Payee
The original amount of a note, sometimes referred to as the face amount
Principal
The percentage of the principal that is due for the use of the funds secured by a note
Interest Rate
The date on which the principal of a note is due to be repaid
Maturity Date
The length of time from the signing date of a note to the maturity date
Time of a Note
The amount that is due on the maturity date of a note
Maturity Value
The interest earned on money loaned
Interest Income
A note that is not paid when due
Dishonored Check
YOU MIGHT ALSO LIKE...