CHAPTER 8 know what kinds of receivables comprise "trade receivables". know when to record receivables on a company's books. > Be able to calculate the actual cash received when collecting on an accounts receivable when returns and allowances and discounts are involved. > Be able to make the journal entry that a firm would make when collecting on the maturity date of a note assuming that interest has already been accrued in a prior period through an adjusting entry. know what the face value of a note represents. Know how to compute and accrue interest revenue on a Notes Receivable, including the appropriate adjusting journal entry. Be able to use the simple interest equation to calculate the principal on the note if we know the interest amount, the rate, and the time period in days