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13 Cards in this Set
- Front
- Back
A claim against the customer created by selling the merchandise or services on credit.
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Accounts Receivable
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The relationship between net sales and accounts receivable, computed by dividing the net sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.
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Accounts receivable turnover
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The process of analyzing the accounts receivable and classifying them according to various age groupings, with the due date being the base point for determining age.
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Aging the receivables
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The contra asset account for accounts receivable.
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Allowance for doubtful accounts
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The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.
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Allowance method
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The operating expense incurred because of the failure to collect receivables.
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Bad debt expense
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The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.
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Direct write-off method
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A note that the maker fails to pay on the due date.
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Dishonored note receivable
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The amount that is due at the maturity or due date of the note.
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Maturity value
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The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions.
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Net realizable value
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A customer's written promise to pay an amount and possibly interest at an agreed-upon rate.
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Notes Receivable
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The relationship between sales and accounts receivable, computed by dividing the net accounts receivable at the end of the year by the average daily sales.
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Number of days' sales in receivables
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All money claims against other entities, including people, business firms, and other organizations.
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Receivables
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