Select the term that best fits each of the following definitions and descriptions.
a.
Notes receivable
b.
Nontrade receivables
c.
Net realizable value
d.
Direct write-off method
e.
Interest-bearing note
f.
Maturity date
g.
Promissory note
h.
Factoring receivables
i.
Trade discount
j.
Present value
k.
Allowance method
l.
Sales discount
m.
Negotiable note
n.
Non-interest-bearing note
o.
Assignment of receivables
p.
Valuation date
____ 21. Receivables that are evidenced by a formal written promise to pay a certain sum of money at a specified date.
____ 22. The date the principal amount of a note is due to be paid.
____ 23. The sum of future receipts or payments discounted to the present date at an appropriate rate of interest.
____ 24. A method of recognizing the estimated losses from uncollectible accounts as expenses during the period in which the sales occur.
____ 25. A note that is legally transferable by endorsement and delivery.
____ 26. Any receivable arising from transactions that are not directly associated with the normal operating activities of a business.
____ 27. A note written in the form where the face amount includes the interest charges.
____ 28. The borrowing of money with receivables pledged as security on the loan.
____ 29. A note written in the form where the maker promises to pay the face amount plus interest at a specified rate.
____ 30. An unconditional written promise to pay a certain sum of money at a specified time.
Select the term that best fits each of the following definitions and descriptions.
| a. | Notes receivable |
| b. | Nontrade receivables |
| c. | Net realizable value |
| d. | Direct write-off method |
| e. | Interest-bearing note |
| f. | Maturity date |
| g. | Promissory note |
| h. | Factoring receivables |
| i. | Trade discount |
| j. | Present value |
| k. | Allowance method |
| l. | Sales discount |
| m. | Negotiable note |
| n. | Non-interest-bearing note |
| o. | Assignment of receivables |
| p. | Valuation date |
____ 21. Receivables that are evidenced by a formal written promise to pay a certain sum of money at a specified date.
____ 22. The date the principal amount of a note is due to be paid.
____ 23. The sum of future receipts or payments discounted to the present date at an appropriate rate of interest.
____ 24. A method of recognizing the estimated losses from uncollectible accounts as expenses during the period in which the sales occur.
____ 25. A note that is legally transferable by endorsement and delivery.
____ 26. Any receivable arising from transactions that are not directly associated with the normal operating activities of a business.
____ 27. A note written in the form where the face amount includes the interest charges.
____ 28. The borrowing of money with receivables pledged as security on the loan.
____ 29. A note written in the form where the maker promises to pay the face amount plus interest at a specified rate.
____ 30. An unconditional written promise to pay a certain sum of money at a specified time.
Related questions
Weldon Corporationâs fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2018:
| Mar. | 17 | Accounts receivable of $3,700 were written off as uncollectible. The company uses the allowance method. | ||
| 30 | Loaned an officer of the company $45,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2019. | |||
| May | 30 | Discounted the $45,000 note at a local bank. The bankâs discount rate is 9%. The note was discounted without recourse and the sale criteria are met. | ||
| June | 30 | Sold merchandise to the Blankenship Company for $32,000. Terms of the sale are 2/10, n/30. Weldon uses the gross method to account for cash discounts. | ||
| July | 8 | The Blankenship Company paid its account in full. | ||
| Aug. | 31 | Sold stock in a nonpublic company with a book value of $7,000 and accepted a $8,200 noninterest-bearing note with a discount rate of 9%. The $8,200 payment is due on February 28, 2019. The stock has no ready market value. | ||
| Dec. | 31 | Bad debt expense is estimated to be 1% of credit sales for the year. Credit sales for 2018 were $900,000. |
There are nine entries.
