| 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 |
| book value of accounts receivable | the difference between the balance of Accounts Receivable and it's contra acount, Allowance for Uncollectible Accounts |
| 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 the note | the person or business that signs a note and thus promises to make payment |
| maturity date | the date on which the principal is due to be repaid |
| maturity value | the amount that is due on the maturity date of the 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 customer |
| 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 that assumes a percent of credit sales will 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 period of time |
| time of note | the length of time from the signing date of a note to the maturity date |
| writing off an account | cancelling the balance of a customer account because the customer does not pay |
