Conceptual objectives:

1. Describe accounts receivable and how they occur and are recorded.
2. Describe a note receivable, the computation of its maturity date, and the recording of its existence.
3. Explain how receivables can be converted to cash before maturity.

Analytical objectives:

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

Procedural objectives:

1. Apply the direct write-off method to account for accounts receivable.
2. Apply the allowance method and estimate uncollectibles based on sales and accounts receivable.
3. Record the honoring and dishonoring of a note and adjustments for interest.