Matching Questions 114. Match each of the following terms with the appropriate definitions. 1. A written promise to pay a specified amount either on demand or at a definite future date ...

1. A written promise to pay a specified amount either on demand or at a definite future date

Matching principle

2. The one to whom the promissory note is made payable

Aging of accounts receivable

3. One who signs a note and promises to pay it at maturity

Interest

4. A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible

Promissory note

5. A process of classifying accounts receivable by how long it is past its due date for the purpose of estimating the amount of uncollectible accounts

Payee of a note

6. The accounting principle that requires expenses to be reported in the same period as their related sales

Maker of a note

7. The expected proceeds from converting an asset into cash

Realizable value

8. Amounts due from customers arising from credit sales

Bad debts

9. The accounts of customers who do not pay what they have promised to pay a company

Allowance for doubtful accounts

10. The cost a borrower incurs when taking out a loan, alternatively the profit from lending money for a lender

Accounts receivable