ACC 296 Lecture Notes - Lecture 2: Promissory Note, Debits And Credits, Accounts Receivable
Analyzing accounts receivable according to when they are due.
Bad Debt or Uncollectible Accounts
Accounts Receivable that can not be collected.
Book Value
The difference between the balance of Accounts Receivable and it s contra account, Allowance for
Uncollectible Accounts.
Book Value of Accounts Receivable
The difference between the balance of Accounts Receivable and its contra account, Allowance for
Uncollectible Accounts.
Direct write-off method
Recording un-collectible accounts expense only when an amount is actually known to be un-collectible.
Face Amount or Principal
The original amount of a note, sometimes referred to as the face amount.
Interest rate
The percentage of the principal that is due for the use of the funds secured by a note.
Maker of a note
The person or business that signs a note and thus promises to make payment.
Maturity Date
The date on which the principal of a note is due to be repaid.
Maturity Value
The amount that is due on the maturity date of a note.
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Document Summary
Analyzing accounts receivable according to when they are due. The difference between the balance of accounts receivable and it s contra account, allowance for. The difference between the balance of accounts receivable and its contra account, allowance for. Recording un-collectible accounts expense only when an amount is actually known to be un-collectible. The original amount of a note, sometimes referred to as the face amount. The percentage of the principal that is due for the use of the funds secured by a note. The person or business that signs a note and thus promises to make payment. The date on which the principal of a note is due to be repaid. The amount that is due on the maturity date of a note. The amount accounts receivable a business expects to collect. A written and signed promise to pay a sum of money at a specified time. A promissory note signed by a business and given to a creditor.
