Chapter 14 Review

Crediting the estimated value of uncollectible accounts to a contra account.

• Allowance Method

• Writing off An Account

• Notes Payable

• Greatest Common Factor

The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

• Net Income

• Book Value of Accounts Receivable

• Net Loss

• Overage

The difference between an asset’s account balance and its related contra account.

• Income

• Principle

• Book Value

• Expense

The amount of accounts receivable a business expects to collect.

• Interest Income

• Book Value

• Interest Rate

• Net Realizable Value

A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible.

• Percent of Accounts Receivable Method

• Percent of Sales Method

• Best Guess

A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.

• Percent of Accounts Receivable Method

• Percent of Sales Method

• Best Guess

Analyzing accounts receivable according to when they are due.

• Percent of Accounts Receivable Method

• Allowance Method

• Aging of Accounts Receivable

• Percent of Sales Method

Canceling the balance of a customer account because the customer does not pay.

• Writing off an account

• Aging of Accounts Receivable

• Call an attorney

• Giving up

A written and signed promise to pay a sum of money at a specified time.

• Note Payable

• Promissory Note

• Bank Loan

• None of the Above

A promissory note signed by a business and given to a creditor

• Note Payable

• Accounts Receivable

• Accounts Payable

• None of the Above