EXERCISE 8-7
Purpose: | (L.O. 1 thru 9) This exercise will quiz you about terminology used in this chapter. |
A list of accounting terms with which you should be familiar appears below.
Accounts receivable | Factor |
Accounts receivable turnover ratio | Maker |
Aging the accounts receivable | Notes receivable |
Allowance for doubtful accounts | Other receivables |
Allowance method | Payee |
Average collection period | Percentage-of-receivables basis |
Bad Debt Expense | Percentage-of-sales basis |
Cash (net) realizable value | Promissory note |
Direct write-off method | Receivables |
Dishonored note | Trade receivables |
Instructions
For each item below, enter in the blank the term that is described.
- _____________________Amounts due from individuals and other companies.
- _____________________Amounts owed by customers on account.
- _____________________Claims for which formal instruments of credit are issued as proof of the debt.
- _____________________Various forms of nontrade receivables, such as interest receivable and income taxes refundable.
- _____________________The analysis of customer balances by the length of time they have been unpaid.
- _____________________Management establishes a percentage relationship between the expected losses from uncollectible accounts and the amount of receivables.
- _____________________Management establishes a percentage relationship between expected losses from uncollectible accounts and the amount of credit sales.
- _____________________The net amount expected to ...
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