Accounting Outline chapter 9 - PRINCIPLES OF ACCOUNTING I,...

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PRINCIPLES OF ACCOUNTING I, CHAPTER 9RECEIVABLESI.Defineda.A claim for payment against another entity.b.Accounts receivable1.Most common type of receivable2.Where the business sold on credit to customers in the ordinary course of business.3.Usually expected to be collected in a short period of time. These are therefore typically current.c.Notes receivable.1.These also involve selling on credit, but are evidenced by a formal written agreement.2.Typically involve payment of interest by whoever owes.3.Often involve credit that is not paid off over a more extendedperiod of time. May be current or noncurrent.4.Sometimes used where a customer gets behind on payment. The business may allow the customer to replace the account receivable with a note.d.Other receivables1.Usually listed separately from accounts or notes receivable.2.These may be interest receivable, receivables from officers oremployees, etc.

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Term
Spring
Professor
Stephenson
Tags
Accounting, Balance Sheet, uncollectible account, specific account receivable

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