| A | B |
|---|
| Aging of accounts receivable | Analyzing accounts receivable according to when they are due. |
| Allowance method | Crediting the estimated value of uncollectible accounts to a contra account. |
| Book value | The difference between an asset’s account balance and its related contra account balance. |
| Book value of accounts receivable | The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts. |
| Direct write-off method | Recording uncollectible accounts expense only when an amount is actually known to be uncollectible. |
| Dishonored note | A note that is not paid when due. |
| Interest income | The interest earned on money loaned. |
| Interest rate | The percentage of the principal that is due for the use of the funds secured by a note. |
| Maker of a note | The person or business that signs a note and thus promises to make payment. |
| Maturity date | The date on which the principal of a note is due to be repaid. |
| Maturity value | The amount that is due on the maturity date of a note. |
| Net realizable value | The amount of accounts receivable a business expects to collect. |
| Note payable | A promissory note signed by a business and given to a creditor. |
| Note receivable | A promissory note that a business accepts from a person or business. |
| Payee | The person or business to whom the amount of a note is payable. |
| Percent of accounts receivable method | A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible |
| Percent of sales method | A method used to estimate uncollectible accounts receivable which assumes that a percentage of each sales dollar will eventually become uncollectible. |
| Principal | The original amount of a note, sometimes referred to as the face amount. |
| Promissory note | A written and signed promise to pay a sum of money at a specified time |
| Time of a note | The length of time from the signing date to the maturity date, usually expressed as the number of days; also referred to as "term" of note. |
| Uncollectible accounts | Accounts receivable that cannot be collected. |
| Writing off an account | Canceling the balance of a customer account because the customer does not pay. |
