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chp 9 sec 1

QuestionAnswer
acid test ratio sum of cash and investments "acid"
aging of accounts method the accounts getting old
money for doubtful account money for doubtful
allowance for uncollectible accounts allowance for uncollectible
allowance method ALLOWANCE method recording collection losses
collection period collect the periods
creditor party to a credit transaction "credit"
debtor party to a credit transaction "debit"
dishonor of a note failure to pay a note payable
direct write off method company decides that a customers A/R is uncollectible
discounting "selling" a note receivable selling a note receivable before its time
due date date when final payment of a note is due "funny movie"
Created by: 12azimmerman