Flashcards in Reversed Chapter (8) Deck (13):
1
The subsidiary ledger containing the individual accounts with suppliers (creditors).
accounts receivable
2
The relationship between net sales and accounts receivable; computed by dividing the net sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.
account form
3
The process of analyzing the accounts receivable and classifying them according to various age groupings; with the due date being the base point for determining age.
aging the receivables
4
The contra asset account for accounts receivable.
Allowance for Doubtful Accounts
5
The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their writeoff.
allowance method
6
The operating expense incurred because of the failure to collect receivables.
bad debt expense
7
The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.
direct write-off method
8
A note that the maker fails to pay on the due date.
dishonored note receivable
9
The amount that is due at the maturity or due date of a note.
maturity value
10
The estimated selling price of an item of inventory less any direct costs of disposal; such as sales commissions.
net realizable value
11
A customer’s written promise to pay an amount and possibly interest at an agreed-upon rate.
notes receivable
12
The relationship between sales and accounts receivable; computed by dividing the net accounts receivable at the end of the year by the average daily sales.
number of days’ sales in receivables
13