Term
|
Definition
| Amounts owed by customers on account. |
|
|
Term
| Accounts Receivable Turnover Ratio |
|
Definition
| A measure of the liquidity of accounts receivable, computed by dividing net credit sales by average net accounts receivable. |
|
|
Term
| Aging The Accounts Receivable |
|
Definition
| The analysis of customer balances by the length of time they have been unpaid. |
|
|
Term
| Allowance for Doubtful Accounts |
|
Definition
| An account that showed the estimated amount of claims on customers that the company expects will become noncollectable in the future. |
|
|
Term
|
Definition
| A method of accounting for bad debts that involves estimating noncollectable accounts at the end of each period. |
|
|
Term
| Average Collection Period |
|
Definition
| The average amount of time that a receivable is outstanding. Calculated by dividing 365 days by the accounts receivable turnover ratio. |
|
|
Term
|
Definition
| An expense account to record noncollectable receivables. |
|
|
Term
|
Definition
| A method of accounting for bad debts that involves expensing accounting at the time they are determined to be noncollectable. |
|
|
Term
|
Definition
| A note that is not paid in full at maturity. |
|
|
Term
|
Definition
| A finance company or bank that buys receivables from businesses and then collects the payments directly from the costumers. |
|
|
Term
|
Definition
| The party in a promissory note who is making the promise to pay. |
|
|
Term
|
Definition
| Claims for which formal instruments of credit are issued as proof of the debt. |
|
|
Term
|
Definition
| Various forms of non-trade receivables such as interest receivable and income taxes refundable. |
|
|
Term
|
Definition
| The party to who payment of a promissory note is to be made. |
|
|
Term
| Percentage Of Receivables Basis |
|
Definition
| Management estimates what the percentage of receivables will result in losses from noncollectable accounts. |
|
|
Term
| Percentage Of Sales Basis |
|
Definition
| Management estimates what percentage of credit sales will be noncollectable. |
|
|
Term
|
Definition
| A written promise to pay a specified amount of money on demand or at a definite time. |
|
|
Term
|
Definition
| Amounts due from individuals and other companies. |
|
|
Term
|
Definition
| Notes and accounts receivables that result from sales transactions. |
|
|
