This link will take you to a variety of examples related to Chapter 6. Ndisc.xls Discounting of Notes receivable. Two acceptable methods exist for accounting for uncollectible accounts . Be sure that you know the difference between these methods and how to apply them. Accounting for uncollectible accounts requires estimation of expected bad debts.
Companies commonly provide incentives for customers who pay quickly.
Some notes-receivable do not carry a stated interest rate. Make sure that you know how to account for non-interest bearing notes. Getting Quick Cash from Receivables. Be sure you know how to account for these different methods Some Companies Find the footnote in which the companies linked below discuss Accounts and Notes Receivable. Compare the different methods described and try to relate them to the concepts and principles as described in the conceptual framework and in chapter 6.