The Module begins with a brief discussion of the different types of sales: cash, credit card sales, debit card sales, and sales on account. Next, we discuss internal controls for cash and preparing a bank reconciliation. An introduction is made for the two methods of accounting for uncollectible accounts receivable: the direct write-off method and the allowance method. Then we cover notes receivable and how to calculate and accrue interest revenue at the end of the accounting period. The current ratio and the quick ratio are presented to demonstrate how a business measures its liquidity. Finally, accounts receivable turnover and the receivable collection period show how a business manages their accounts receivable.