3.02
5.02
1.01
2.01
4.01
100
A written promise to pay a certain amount of money at a specific time
What is a Promissory note
100
An Accounts Receivable account that cannot be collected
What is Uncollectible account
100
Asset that will be used for a number of years in the operation of a business
What is Plant asset
100
A written promise to pay a certain amount of money at a specific time
What is Promissory note
100
A note that requires the interest to be paid in advance; interest is deducted from the face value of the note
What is Non-interest-bearing note
200
A person or organization to whom a liability is owed
What is Creditor
200
Canceling the balance of a customer account because the customer does not pay
What is Writing off an account
200
Method of calculating depreciation which charges an equal amount of depreciation expense for a plant asset in each year of its useful life
What is Straight-line method of depreciation
200
A person or organization to whom a liability is owed
What is Creditor
200
Interest on a note that is deducted in advance
What is Bank discount
300
A promissory note that a business issues to a creditor when it borrows or buys on credit
What is Note payable
300
Contra asset account for Accounts Receivable
What is Allowance for Uncollectible Accounts
300
The amount an owner expects to receive when a plant asset is removed from use
What is Estimated salvage value (estimated disposal value)
300
A promissory note that a business issues to a creditor when it borrows or buys on credit
What is Note payable
300
The cash received by the borrower; equals face value less any bank discount
What is Proceeds
400
Amount being borrowed
What is Principal (face value)
400
Expense account used to record the expense incurred when an Accounts Receivable customer does not pay
What is Uncollectible Accounts Expense
400
The number of years a plant asset is expected to be used
What is Estimated useful life
400
Amount being borrowed
What is Principal (face value)
400
General ledger account used to record interest paid on a note; classified as an Other Expense
What is Interest Expense
500
Amount of time ( stated in days, months, or years) the borrower has to repay the note
What is Term (time)
500
Method of accounting for bad debts used by a business to remove from the accounting records an individual account determined to be uncollectible
What is Direct write-off method
500
The portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during the plant asset’s useful life
What is Depreciation expense
500
Date a note is due
What is Maturity date
500
A note that is not paid when due
What is Dishonored note
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