Accounting 201-Chapter 8

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Across
  1. 3. credit when cash is collected on account
  2. 4. the sum of the principal plus interest due at maturity
  3. 7. credit for the journal entry when goods are sold on account
  4. 9. who receives a receivable
  5. 10. when a business sells its receivables to a finance company or bank
  6. 11. the party to a credit transaction that takes on an obligation to pay later
  7. 13. similar to percent of receivables method but applies a different percentage to each aging category
  8. 16. method of computing bad debts by multiplying the percentage of uncollectible accounts by the ending unadjusted balance in A/R instead of by net credit sales
  9. 17. when a business sells goods or services to another party on account
  10. 18. when a business uses its receivables as security for a loan
  11. 19. uses an estimate to record bad debts expense
Down
  1. 1. longer terms than accounts receivable also called promissory notes
  2. 2. method of accounting for uncollectible receivables when accounts receivable is written off and bad debts expense is recorded
  3. 5. the date when the final payment of the note is due
  4. 6. computes bad debts expense as a percentage of net credit sales
  5. 8. debit for the journal entry when goods are sold on account
  6. 12. the right to receive cash in the future from customers for goods or for services
  7. 14. debit when cash is collected on account
  8. 15. sometimes called doubtful accounts expense or uncollectible accounts expense