| A | B |
|---|
| banker's year | 360 days |
| payee | The person collecting payment on a note |
| maker | The person promising to pay the promissory note they made |
| Which way of accounting for bad debts is the GAAP way? | The Allowance Method |
| Which way of accounting for bad debts is not the GAAP way? | The Direct Write Off Method |
| Which way of accounting for bad debts have we been learning? | Allowance Method |
| What are the 2 ways of predicting bad debts when using the Allowance Method? | Aging Analysis and % of Sales |
| Which method of estimating bad debts is preferred? | Aging Analysis of Receivables is preferred over % of Sales |
| Which way of estimating for bad debts has no thinking involved? | The % of Sales method has no analysis involved in it. |
| In the Allowance Method which account is only used at year end for adjusting and closing? | Uncollectible Accounts Expense |
| In the Allowance Method what account is used all through the year? | Allowance for Doubtful Accounts |
| What is the classification of the Allowance for Doubtful Accounts | contra asset account used in the Currrent Assets section |
| The Allowance for Doubtful Accounts is an contra account to: | Accounts Receivable |
| Accounts Receivable MINUS the Allowance for Doubtful Accounts = | Net Value, also called Book Value, as well as being called Carrying Value, and a few accountants might call it the Expected Realizable Value of Receivables |
| Principal + Interest = | Maturity Value |
| What items must you have to calculate the Maturity Value? | Duration of note, face value, and interest rate |
| Selling accounts receivable is called | Factoring |
| Selling notes receivable is called: | Discounting |
| A promissory note not paid on the maturity date is said to be | Dishonored |
