ACC 201 WORKSHOP FOUR BADDEBT ALLOWANCE & INTEREST AND MATURITY VALUES HANDOUT FOR 4.4 DROPBOX
Download Bad-Debt Allowance & Interest and Maturity Values Handout for 4.4 Dropbox Review the questions below. As you watch the video Concepts of Allowance for Bad Debts, take notes and answer the following questions for Dropbox submission:
Question How does the matching principle apply when recognizing bad-debt expense, and how does the allowance method apply the matching principle?
1.
2. What are the accounting entries made when writing off bad debts? Give the account debited and the account credited. 3. What is the inherent problem when the direct write-off method is used and a credit sale made in one period is found to be uncollectible in another period? 4. What is the term for the value of accounts receivable we expect to be able to collect? 5. Why is an additional expense not recorded when we learn that an account is, indeed, not going to be collectible?
Review the questions below. As you watch the video Computing Interest and Maturity Values, take notes and answer the following questions for Dropbox submission Question 1. What three factors determine the amount of money to be repaid on a note payable? 2. What is the difference between a note payable and an account payable? 3. When calculating interest expense, how do you adjust an annual rate to get a monthly rate? 4. If the annualized rate is 6% and the principal amount is $2,000, what would the interest charge be for one month? 5.
What does it mean when we say a note matures?
6. What values are added to arrive at a maturity value?