ADMN 1021H Chapter Notes - Chapter 8: Operating Expense, Promissory Note, Subledger

• School: Trent University
• Department: Business Administration
• Course: ADMN 1021H
• Professor: Wallace Peggy

Document Summary

So 1: identify the types of receivables and record accounts receivable transactions. So 4: explain the statement presentation of receivables. So 5: apply the principles of sound accounts receivable management. Types of receivables: amounts due to a business from its customers or other entities expected to be collected in cash. Nonbank credit card receivables: bank credit card and debit card transactions recorded as cash, nonbank (company) credit cards recorded as accounts receivable, collections usually outsourced and sent to a credit card company for reimbursement. Losses from these uncollectible accounts are debited to an account called. Bad debts expense: bad debts expense is recognized in the same period that the related sales revenue is generated. Formula for calculating interest: the basic formula for calculating interest on an interest-bearing note is. Face value of note x annual interest rate x time in terms of 1 year = interest: the interest rate specified on the note is an annual rate of interest.