Conceptual

Describe accounts receivable and how they occur and are recorded. Describe a note receivable and the computation of its maturity date and interest. Explain how receivables can be converted to cash before maturity.

Analytical

Compute accounts receivable turnover and use it to help assess financial condition.

Procedural

Apply the direct write-off and allowance methods to account for accounts receivable. Estimate uncollectibles using methods based on sales and accounts receivable. Record the receipt of a note receivable. Record the honoring and dishonoring of a note and adjustments for interest.