University:
Southern New Hampshire University
Course:
BUSS-225 | Critical Skills for Business Success
Academic year:

2023
Views:

63

Pages:

1
Author:

Nickolas Santos

Chapter 6 Vocabulary   Uncollectible Accounts: Accounts receivable that cannot be collected 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. Net Realizable Value: The amount of accounts receivable a business expects to collect. 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. Percent of Accounts Receivable Method: A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible Aging of Accounts Receivable: Analyzing accounts receivable according to when they are due. Writing off an Account: Canceling the balance of a customer account because the customer does not pay Direct Write-Off Method: Recording uncollectible accounts expense only when an amount is actually known to be uncollectible. Promissory Note: A written and signed promise to pay a sum of money at a specified time. 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. Maker of a Note: The person or business that signs a note and thus promises to make payment. Payee: The person or business to whom the amount of a note is payable. Principal: The original amount of a note, sometimes referred to as the face amount. Interest Rate: The percentage of the principal that is due for the use of the funds secured by a note. Maturity Date: The date on which the principal of a note is due to be repaid Time of a Note: The length of time from the signing date to the maturity date, usually expressed as the number of days. Maturity Value: The amount that is due on the maturity date of a note. Interest Income: The interest earned on money loaned. Dishonored Note: A note that is not paid when due.

Critical Skills for Business Success Chapter 6 Vocabulary

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