1st accounting chapter 7 – Flashcards

a written promise to pay a specified amount of money at a certain date

is the day the note is due to be paid

the interest accrued on $3,600 at 7% for 60 days is?

a 90-day note issued on April 20 has a maturity date of:

a company receives a 6.2%, 60-day note for $9,650. The amount of cash due on the maturity date is:

calculated by dividing net sales by average accounts receivable

requires the use of the allowance method of accounting for bad debts

method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the

Electron borrowed $75,000 cash from TechCom by signing a promissory note. TechCom's entry to record the transaction should include a

failure by a promissory note's maker to pay the amount due at maturity is known as:

On August 1, 2013, Ace corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965. The note is due in 90 days and has an interest rate of 8%. What would be the total amount collected at the maturity date?