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22 Cards in this Set
- Front
- Back
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Uncollectible accounts |
Account receivables that can't be collected |
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Allowance methods |
Crediting the estimated value of uncollectible accounts to a contra a account |
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Book value |
The difference between an asset's account balance and it's related contra account balance |
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Book value of accounts receivable |
The difference between the balance of accounts receivable and it's contra account, allowance of uncollectible accounts |
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Net realizable value |
The amount of accounts receivable a business expects to collect |
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Percent of sales method |
A method used to estimate uncollectible accounts receivable which assumes that a percentage of each sales dollar will eventually become uncollectible |
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Percent of accounts receivable method |
A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible |
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Aging of accounts receivable |
Analyzing accounts receivable according to when they are due |
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Writing off an account |
Cancelling the balance of a customer account because the customer does not want to pay |
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Direct write-off method |
Recording uncollectible accounts expense only when an amount us actually known to be uncollectible |
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Promissory note |
A written and signed promise to pay a sum of money at a specified time |
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Note payable |
A promissory note signed by a business and given to the creditor |
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Note receivable |
A promissory note that a business accepts from a person or business |
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Maker of a note |
The person or business that signs a note and thus promises to make payments |
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Payee |
The person/business to whom the amount of a note is payable |
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Principal |
The original amount of a note (face amount) |
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Interest rate |
The percentage of the principal that is due for the use of the funds secured by a note |
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Maturity date |
The date in which the principal of a note is due to be repayed |
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Time of a note |
The length of time from the signing date to the maturity date, usually expressed as the number of days |
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Maturity value |
The amount that is due on the maturity date of a note |
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Interest income |
The interest earned on money loaned |
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Dishonored note |
A note that's not payed when due |
