You are watching: Which of the following is a way of disposing of a note receivable?
On January 15, Nifty firm sells goods on account to Martinez Associates because that $3,000 through terms 3/10, n/30. ~ above January 20, Martinez return merchandise worth $600 to Nifty. Top top January 24, payment is obtained from Martinez because that the balance due. What is the lot of cash received?
Allowance for cynical Accounts is a contra account that is deducted from accounts Receivable on the balance sheet.
Aging the accounts receivable: evaluation of client account balances by length of time they have been unpaid.Direct write-off method: bad debt losses room not estimated and no pin money account is used.Trade receivables: Notes and also accounts union that result from sales transactions.Accounts unification turnover: A measure up of the liquidity the receivables.Percentage of receivables basis: Emphasizes supposed cash realizable value of accounts receivable.Promissory note: A written promise to salary a specified amount on demand or at a definite time.Dishonored note: A note which is not paid in complete at maturity.Cash network realizable value: The net amount supposed to be obtained in cash.Credit card sales: Emphasizes expected cash realizable worth of accounts receivable.
If a company has significant concentrations of credit transaction risk, that must discuss this threat in the notes to its gaue won statements.
The bookkeeper taped the complying with journal entryAllowance for unconvinced Accounts 1,000Accounts unification - Richard James 1,000Which among the complying with statements is false?
An aging of account receivable schedule is based on the premise that the much longer the period an account stays unpaid, the better the probability that it will at some point be collected.
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An aging of account receivable schedule is based upon the premise the the longer the duration an account stays unpaid, the higher the probability that it will at some point be collected.
Fundamental Financial accounting Concepts9th EditionChristopher Edmonds, Frances M McNair, Philip R. Olds, thomas P. Edmonds