| Interest revenue that was earned in the current period, but wont be received until a future period |
| The right to receive cash from customers for goods sold or services performed |
| Principal plus interest, which is the total amount that will be paid back |
| Amount the company expects to collect from its accounts receivable |
| A written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future |
| Contra account to Accounts Receivable that shows the amount of Accounts Receivable that is estimated to be uncollectible |
| Contains the cost of uncollectible accounts receivable |
| Accounts receivable are written off and bad debts are recorded when a business determines it wont collect a specific account |
| Debit Bad Debts Expense and Credit Allowance for Bad Debts |
| Date when the note is due |
| Method of estimating the amount of bad debts expense that is considered the income statement approach |
| Debit Allowance for Bad Debts and Credit Accounts Receivable |
| Records bad debts as an estimated amount in the same period as the sales revenue |
| Note that is not paid at maturity |
| Method that determines the ending balance of the Allowance for Bad Debts by multiplying a percentage by the ending unadjusted balance of Accounts Receivable |
| Calculated as Principal * rate * time |
| It violates the matching principle |
| The amount loaned by the payee and borrowed by the maker of the note |
| Method that determines the ending balance of the Allowance for Bad Debts by multiplying percentages by amounts of accounts receivables classified by due date |