| A | B |
|---|
| Accounts Receivable | owed by customers on acct; to be collected 30-60 days=CA |
| Notes Receivable | formal credit arrangements evidenced by note; requires debtor to pay int |
| Trade Receivable | A/R or N/R resulting from sales transactions |
| AJE to recognize Bad Debt Exp. | Dr Bad Debt Exp.; Cr Allowance for Doubtful Accounts |
| to write off Bad Debt Exp. Acct | dr. Allowance for Doubtful Accounts; Cr A/R |
| To restore and collect from a previously written off account | Dr A/R; Cr Allowance for Doubtful Accounts |
| to collect after written off account | Dr Cash; Cr A/R |
| Allowance based upon percentage of sales | Just multiply sales x percentage |
| Receivables Turnover Ratio | Net credit sales/Average A/R |
| Average collection period | 365/Receivable Turnover Ratio |
| Promissory note | pay by maker to payee; maker->pay amt @ time in future with interest |
| 2 party instrument | maker and payee (can be bearer) |
| Principal | amt. borrowed |
| Term | amt. of time note = outstanding |
| Maturity Date | when the note is due |
| Maturity Value | principal + interest; amt due on maturity date |
| Balance Sheet Presentation of Receivables | N/R first then A/R |
