Accounting Chapter 14 Review

Crediting the estimated value of uncollectible accounts to a contra account

• writing off an account

• allowance method

• percent of accounts

  receivable method

• percent of sales

  method

The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

• principal

• net realizable value

• dishonored note

• book value of accounts receivable

The difference between an asset’s account balance and its related contra account.

• book value

• interest income

• principal

• time of a note

The amount of accounts receivable a business expects to collect.

• net realizable value

• interest income

• book value

• aging of accounts

  receivable

A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible.

• allowance method

• percent of sales method

• maturity value

• percent of accounts receivable method

Canceling the balance of a customer account because the

customer does not pay.

• writing off an account

• net realizable value

• dishonored note

• aging of accounts receivable

The percentage of the principal that is due for the use of the funds secured by a note.

• interest rate

• interest income

• maturity value

• book value

The length of time from the signing date of a note to the

maturity date.

• book value

• maturity date

• maturity value

• time of a note

A note that is not paid when due is referred to as a dishonored note.

• True

• False

A business having a $300.00 debit balance in Allowance for Uncollectible Accounts and estimating its uncollectible accounts using accounts receivable aging to be $2,000.00

would record a $2,300.00 credit to Allowance for Uncollectible Accounts.

• True

• False