Chapter 14 Review

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

• Allowance Method

• Note Receivable

• Percent of Accounts Receivable

• Net Realizable Value

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

• interest income

• maker of a note

• book value of accounts receivable

• principal

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

• time of a note

• interest income

• payee

• book value

The amount of accounts receivable a business expects to collect.

• writing off an account

• aging of accounts receivable

• net realizable value

• maturity date

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

• aging of accounts receivable

• maturity value

• promissory note

• percent of sales method

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

• percent of accounts receivable method

• allowance method

• interest rate

• percent of sales method

Analyzing accounts receivable according to when they are due.

• allowance method

• payee

• time of a note

• aging of accounts receivable

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

• dishonored note

• writing off an account

• book value

• time of a note

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

• allowance method

• promissory note

• maker of a note

• note payable

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

• note receivable

• principal

• note payable

• dishonored note