Accounting 2 Semester 1 Review| 53 questions| with complete solutions

allowance method correct answer: crediting the estimated value of uncollectible accounts to a contra account book value of accounts receivable correct answer: the difference between the balance of accounts receivable and its contra account, allowance for uncollectible accounts book value correct answer: the difference between an asset's account balance and its related contra account net realizable value correct answer: the amount of accounts receivable a business expects to collect percent of sales method correct answer: a method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible percent of accounts receivable method correct answer: a method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible aging of account receivable correct answer: analyzing accounts receivable according to when they are due writing off an account correct answer: canceling a balance of a customer account because the customer does not pay promissory note correct answer: a written and signed promise to pay a sum of money at a specified time note payable correct answer: a promissory note signed by a business and given to a creditor note receivable correct answer: a promissory note that a business accepts from a customer maker of a note correct answer: the person or business that signs a note and thus promises to make payment payee correct answer: the person or business to whom the amount of a note is payable principal correct answer: the original amount of a note, sometimes referred to as the face amount interest rate correct answer: the percentage of the principal that is due for the use of the funds secured by a note maturity date correct answer: the date on whi