Business who have several bank accounts, petty cash, and cash on hand, would maintain a ledger account for each type of cash. 15. When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor. 16. A payment system that uses computerized electronic impulses to effect a cash transaction is called electronic funds transfer (EFT). 17. A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid. 18. Bank customer are considered creditors of the bank so the bank shows their accounts with credit balances on the bank's records. 19. For efficiency of operations and better control over cash, a company should maintain only one bank account. 20. The main reason that the bank statement cash and the company's cash balance do not initially balance is due to timing differences. 21. The petty cash fund eliminates the need for a bank checking account. 22. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables. 23. When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible. 24. Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period. 25. When using the estimate based on sales method, the entry to record uncollectible accounts expense includes a credit to the Accounts Receivable account. 26. At the end of a period (before adjustment). Allowance for Doubtful Accounts has a credit balance of $5,000. The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $50,000. The amount to be recorded in the adjusting entry for the Bad Debt Expense is $45,000. 27. The party promising to pay a note at maturity is the maker. 28. The equation for computing interest on an interest-bearing rote is as follows: interest equals maturity value times interest rate times time. 29. Be accounts receivable tumover ratio is computed by dividing total gross sales by the average receivables during the year