Bad Debts
Normal balance of Accounts Receivable
Debit
Adjusting entry for bad debts
Debit Uncollectible Accounts Expense
Credit Allowance for Uncollectible Accounts
The person or business that signs a note
The maker of the note
The expense account used to record payment of the payroll.
Salary Expense
The four taxes paid by the employer
Social Security
Medicare
Futa
Suta
The difference between an asset's account balance and its related contra account
Book value
Using the Allowance Method to write-off an account
Debit Allowance for Uncollectible Accounts
Credit Accounts Receivable/Customer
The face amount of the note is also known as
Principal
The three pieces of information used to determine the Income Tax withheld from employees' paychecks
Total Earnings, Withholding Allowances, Marital Status
These two payroll taxes are paid by both the employer and the employee
Social Security and Medicare
Account Receivables that cannot be collected are called
Uncollectible Accounts (Bad Debts)
Writing-off an account using the Direct Write-Off Method
Debit Uncollectible Accounts Expense
Credit Accounts Receivable/Customer
The date on which a note is due
Maturity date
The percentage of total earnings used to calculate Medicare tax
1.45%
Interest earned on a note is recorded in this section of the income statement (be specific)
OTHER Revenue
Crediting the estimated value of bad debts to a contra account is called
The allowance method
How does writing-off an account affect the book value of Accounts Receivable?
It doesn't change
The length of time from the signing of the note until the day it is due
Time of a note (or term)
This concept is NOT applied when using the Direct-Method to write-off an account
Matching Revenue and Expenses
The tax base for unemployment taxes
$7,000
The two methods we discussed in class to estimate the bad debts for the fiscal period
Percentage of Sales and the Aging of Accounts Receivable
Received cash in full payment of a previously written-off account
Debit Accounts Receivable
Credit Allowance for Uncollectible Accounts
Debit Cash
Credit Accounts Receivable
The interest on a $1000, 10%, 180-day note.
$50
The Accounting Concept that states that estimates should be free of bias
Neutrality
The tax base for Medicare
There isn't one