A receivable is an amount due from another party.

Technologically advanced accounting systems rarely need monitoring for errors because computers always process transactions correctly.

A promissory note is a written promise to pay a specified amount of money either on demand or at a definite future date.

The expense recognition (matching) principle permits the use of the direct write-off method of accounting for uncollectible accounts when bad debts are very large in relation to a company’s other financial statement items such as sales and net income.

The notes receivable account of a business should include both the notes that have not yet matured and the dishonored notes.

Sales of $350,000 and net sales of $323,000 could reflect sales discounts of $27,000.

The maturity date of a note receivable:

Technologically advanced accounting systems rarely need monitoring for errors because computers always process transactions correctly.

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:

Money orders, cashier’s checks, and certified checks are all examples of cash.