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Adv Account Chap 14

Vocab

TermDefinition
Aging of Accounts Receivable Analyzing accounts receivable according to when they are due.
Allowance Method Crediting the estimated value of uncollectible accounts to a contra account.
Book Value of Accounts Receivable The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.
Dishonored Note A note that is not paid when due.
Interest Income The interest earned on money loaned.
Note Payable A promissory note signed by a business and given to a creditor.
Note Receivable A promissory note that a business accepts from a customer.
Percent of Accounts Receivable Method A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.
Writing off an Account Canceling the balance of a customer account because the customer does not pay.
Uncollectible Accounts Accounts receivable that cannot be collected.
Created by: Knuddar