Key state from thing 7: reporting and examining Receivables native Financial Accounting, info for decision by man J. Wild. McGraw-Hill, 2005.

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Accounts Receivable
AB
Amounts due from client for credit transaction sales; backed by the customer"s general credit standing.
Accounts receivable TurnoverMeasure the both the quality and liquidity of account receivable; shows how frequently receivables are got and collected during the period; computed by separating net sales by mean accounts receivable.
Aging of account ReceivableProcess of classifying accounts receivable by just how long castle are previous due for functions of estimating uncollectible accounts.
Allowance for unconvinced AccountsContra legacy account v a balance approximating uncollectible accounts receivable; likewise called allowance for Uncollectible Accounts.
Allowance MethodProcedure that (a) estimates and matches negative debts cost with that is sales because that the period and/or (b) reports account receivable at approximated realizable value.
Bad DebtsAccounts of client who execute not salary what they have actually promised come pay; an cost of offering on credit; also called uncollectible accounts.
Direct Write-Off MethodMethod that documents the loss native an uncollectible account union at the time it is established to it is in uncollectible; no effort is made come estimate poor debts.
InterestCharge for making use of money (or other assets) loaned indigenous one entity to another.
Maker of the NoteEntity who signs a note and promises to pay it at maturity.
Matching PrinciplePrescribes costs to be report in the same duration as the earnings that were earned as a an outcome of the expenses.
Materiality PrinciplePrescribes that bookkeeping for items that significantly influence financial statement and inferences from them adhere strictly to GAAP.
Maturity day of a NoteDate as soon as a note"s principal and interest room due.
Payee of the NoteEntity to whom a note is make payable.
Principal the a NoteAmount the the signer of a keep in mind agrees to pay earlier when the matures, not including interest.
Promissory note (Note)Written promise to salary a specified amount one of two people on need or in ~ a identify future date; is a keep in mind receivable for the lender however a no payable for the lendee.

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Realizable ValueExpected proceeds from convert an asset right into cash.
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