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His number was busy all night. He __________ been on the phone continuously for hours.

You __________ pay taxes every year.

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:

She __________ study last night, so she didn’t.

When an asset is sold (or disposed of) at any time other than the beginning of an accounting period, additional depreciation is recorded for part of a year at the date of the sale so that the year of sale/disposal is charged with its share of the asset’s depreciation. 

A bank reconciliation is generally prepared by the bank and sent to the depositor along with canceled checks.  

The allowance method of accounting for bad debts records the expense from an uncollectible account receivable when the company determines it to be uncollectible.  

Terry and Frank said they would come over right after work, so they __________ here by 6:00.

A dishonored or defaulted note is one that is not paid in full at maturity.  

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.