An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.  

The instructor __________ to class late yesterday.

Depreciable value is equal to cost minus salvage value.  

If the credit balance of the Allowance for Doubtful Accounts account is less than the amount of a bad debt that is being written off, the entry to record the write-off results in: 

You __________ worry so much. It doesn’t do you any good. Either you get the job, or you don’t. If you don’t, just apply for another one. Eventually, you will find work.

The process of using accounts receivable as security for a loan is known as pledging accounts receivable.  

Where’s Jill? She __________ forgotten that we were supposed to meet at 2:00 PM.

A debit or credit memo describing entries in the company’s bank account may be enclosed with the bank statement.  An example of a debit memo is:

The net realizable value for accounts receivable on the balance sheet is calculated by subtracting the contra asset account, allowance for doubtful accounts, from the balance of the accounts receivable for the period.  

To compute interest on a note, the accountant needs to calculate the principal of the note times the stated interest rate on the note times the number of days stated on the note.