Accounting 2 Ch 14 & 15 Reivew

A note that is not paid when due

• note receivable

• dishonored note

• promissory note

• note payable

A written and signed promise to pay a sum of money at a specific time

• promissory note

• dishonored note

• note payable

• note receivable

a promissory note signed by a business and given to a creditor

• dishonored note

• note payable

• note receivable

• promissory note

a promissory note that a business accepts from a customer

• dishonored note

• note payable

• note receivable

• promissory note

the original amount of a note, sometimes refereed to as the face amount

• principal

• maturity value

• maturity date

• note

The date on which the principal of a note is due to be repaid

• principal

• maturity date

• maturity value

• final date

the amount that is due on the maturity date of a note

• principal

• maturity date

• maturity value

• note

the adjustment unique to merchandising businesses adjusts

• accounts receivable

• accumulated depreciation

• merchandise inventory

• prepaid insurance

The journal entry to adjust Merchandise Inventory when beginning merchandise inventory is $125,000 and ending merchandise inventory is $115,000 would be

• debit Merchandise Inventory $10,000 and credit Income Summary $10,000

• debit Income Summary $10,000 and credit Merchandise Inventory $10,000

• debit Merchandise Inventory $115,000 and credit Income Summary $115,000

• debit Income Summary $115,000 and credit Merchandise Inventory $115,000

Depreciation expense is calculated using all of the following amounts except

• fair market value

• estimated salvage value

• estimated useful life

• original value