"Accounts Receivable" Essays and Research Papers

Accounts Receivable

Accounts receivable is a legally enforceable claim for payment from a business to its customer/clients for goods supplied and/or services rendered in execution of the customer's order. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the...

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Aging Schedule of Accounts Receivable

Aging Schedule of Accounts Receivable AGE OF ACCOUNT | BALANCE OUTSTANDING | % OF TOTAL BALANCE OUTSTANDING | 0-15 days | $ 20,000 | 19.59 % | 16-30 days | 30,000 | 29.39 | 31-60 days | 40,000 | 39.19 | 61-90 days | 10,000 | 9.80 | Beyond 90 days | 2,071 | 2.03 | TOTAL | $ 102,071 | 100.0 % | 2. To evaluate the credit quality of Aero-Strip’s accounts receivables portfolio, we turn to their average collection period (ACP) and aging of accounts receivable. Knowing the ACP...

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Accounts Receivable Turnover

Accounts Receivable Turnover = Net Sales/Average Net Account Receivables Accounts receivable turnover ratio measures the effectiveness of a company in extending credit and collecting debts. It is an activity ratio that measures how efficiently a firm uses its assets. Year ABC DEF GHI Industry Average 2012 31, 053/988 = 31.43 16,842/1,282.5 = 13.13 5,160/618 = 8.35 17.64 2013 32,722/1,042 = 31.4 18,657/937 = 19.91 5,858/494 = 11.86 21.06 In this table you see the accounts receivable turnovers from...

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Accounts Receivable Crisis

Matthew Smith Week 2 You Decide Assignment Accounts Receivable Crisis 09/05/11 Instructor: Eric Oestman Class: HS543 I. INTRODUCTION: After conducting a meeting with the medical staff, various clinical departments, Health Information Management, and Business office personnel regarding Accounts Receivable issues within our facility, it was determined that many different areas of concern needed to be addressed. This includes problems with patient admission and registration procedures...

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Accounts Receivable, Inventory, Long-lived Assets, Bonds

(Accounts Receivable, Inventory, Long-lived Assets, Bonds) 1. GNC has the following information regarding the inventory of its Super Mega, a multivitamins. Assume GNC uses periodic inventory system each quarter and FIFO. a. On July 1, GNC had 200 bottles of Super Mega in stock. Each bottle costs $3. b. On July 15, GNC purchased 5,000 bottles of Super Mega for $25,000 from a supplier, paid $10,000 in cash and the rest was on credit. c. On August 15, GNC purchased another 1,000 bottles of Super...

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Accounts Receivable and Tutor Marked Assignment

entered into the ledger account.” Elaborate and explain why journal is necessary. (10+10) 2. The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found later on. Rectify these errors by passing Journal entries and prepare Suspense Account. (a) (b) (c) (d) (e) (f) The purchase of Rs. 400 from Saran was entered into sales book but Saran’s personal account was rightly credited....

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Case Cash and Receivables

Case Chapter 7 Cash and Receivables 1. Petty Cash (10 min.) The petty cash fund of $200 for Walsh Company appeared as follows on December 31, 2008: Cash $93.60 Petty cash vouchers Freight in $21.40 Postage 40.00 Balloons for a special occasion 18.00 Meals 25.00 Instructions 1. Prepare the journal entries required to establish the petty cash fund. 2. Prepare in general journal form the entry to replenish the fund. 3. On December 31, the office manager gives instructions...

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Pearson Accounts Receveible

pounds sterling (L). a. What is an account receivable? What other names does this asset go by? b. How do accounts receivable differ from notes receivable? c. What is a contra account? What two contra accounts are associated with Pearson's trade receivables (see Note 22)? What types of activities are captured in each of these contra accounts? Describe factors that managers might consider when deciding how to estimate the balance in each of these contra accounts. d. Two commonly used approaches for...

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Chart of accounts

ACCT 3512 Chart of Accounts Accounts & 4 Characteristics by 6 Acct Types: FS, Real vs. Nominal & Normal Acct Bal (NAB) mjm cpa 9/13 (Contra Accts) [Historical Cost Exceptions] (ACCT 3512 emphasized accts in italics) by Marco J. Malandra, CPA 1. ASSETS: BS, Real, Dr NAB, (Cr if contra) 3. SHs’ EQUITY: BS, Real, Cr NAB (Dr if contra) Current [generally]: IC accts: Preferred Stock [at Par Value] Cash (Money Orders,Checks,Checking, Savings, Petty) Additional-paid-in-capital...

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Account Titles

EXAMPLES OF ACCOUNTS FALLING UNDER EACH ACCOUNTING EQUATION ELEMENT: Current Assets Cash - A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.) Petty Cash Fund - A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc. Notes Receivable - An asset representing the...

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Questions and Answers on Accounts

returns and allowances, $30,000  Gross profit, $490,000  Accounts receivable, $110,000  Sales discounts, $14,000  Allowance for doubtful accounts credit balance, $1,200 How much is bad debt expense assuming that 5% of accounts receivable is estimated to be uncollectible?  A. $5,500 B. $6,700 C. $4,240 D. $4,300 Answer: Bad debt expense ($4,300) = 5% of accounts of accounts receivable (5%  $110,000) - allowance for doubtful accounts credit balance ($1,200). 3) Which of the following journal...

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Preventing Over Due Accounts

within 10 days of the invoice date. The maximum amount of interest that can be charged varies by state. 4. Phone customers and start trying to collect the day after a payment is due.Never wait -- let them know that you keep close track of your accounts receivable. 5. Until a customer pays their bills, don't do any more business with them. Do not bend on this rule – you'll only cause yourself more problems and scuttle any chance of collecting what you're owed. If you really want to keep doing business...

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Accounts Receivable and Sales Return

is account receivable? Credit sales, sales on account b. How do accounts receivable differ from notes receivable? Notes Receivable arises when the seller asks for a note to replace an Accounts Receivable when the customer requests additional time to pay a past-due account. A promissory note is a written promise to pay a specific amount of money, usually including interest, at a future date. c. What is a contra asset? An account which offsets another account. A contra-asset account has...

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Determining the Accounting for Receivables from Officers and Directors.

Determining the Accounting for Receivables from Officers and Directors. Facts Philadelphia Communications Inc. (“Philly”) is a public company that completed an initial public offering (IPO) a few months ago. John Sigar is the current CEO and member of the board of directors. He is the only family member involved in the business and owns significant amount of the company’s stock. While, we were doing audit testing for accounts receivable we came across number of Notes Receivable from several Mr Sigar’s...

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Control Accounts and Its Uses

CONTROL ACCOUNTS AND ITS USES INTRODUCTION: As the business grows in size, more than one ledger is required for recording its transactions which have also expanded with the business. Since the bulk of the entries are made in the accounts of debtors and creditors, these two classes of accounts are taken out of the General Ledger and put in separate ledgers - the Sales Ledger for debtors' accounts and the Purchases Ledger for creditors' accounts. There may be more than three ledgers but for simplicity...

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Accounts Receivable Management

Accounts Receivable Management Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services. They are generally expected to be collected within thirty to sixty days and are the most significant type of claim held by a company. There are two costs associated with extending credit to customers: 1. The cost of the selling company not being able to deposit the monetary value of a completed sale in its bank that is, as a result of not collecting cash...

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Accounting. Theory of Accounts

Theory of Accounts 1. The fundamental qualitative characteristic of faithful representation has the components of a. Predictive value and confirmatory value b. Comparability, consistency, and confirmatory value c. Understandability, predictive value, and reliability d. Completeness, neutrality, and freedom from error 2. The amount reported as “Cash” on a company’s balance sheet normally should exclude a. Postdated checks that are payable to the company b. Cash in a payroll account c. Undelivered...

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Account Receivable

Accounting for Receivables Definition Receivables are amounts due from other persons or entities. Receivables are highly liquid, which means it is expected that they will be converted into cash quickly, and are classified as current assets. Types of Receivables Accounts Receivable: amounts due from customers for sales on credit. Businesses sell to customers on credit in an attempt to increase their sales. Also called Trade Debtors. Bills Receivable: similar to accounts receivable but bills receivable...

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Confirmation Procedure of Account Receivable

process of confirming receivables follow:   Step-1. Obtain Aged Schedule of Accounts Receivable The auditor should obtain an aged schedule of accounts receivable as of the confirmation date. He or she should apply the following procedures to this schedule: Determine that totals are correct. Compare all or a selected sample of account balances with the account balances in the accounts receivable subsidiary ledger. Investigate credit balances.   Step-2. Select Accounts for Confirmation Auditors...

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Accounts Receivable and Merchandise Inventory

following transactions were completed during April. (a) General Journal J1 |Date | |Account Titles and Explanation | |Ref. | |Debit | |Credit | |Apr.  4 | |Merchandise Inventory | |120 | |  840 | | | | | |Accounts Payable | |201 | | ...

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Account Assignment 2

increasing for that 3 years period and a business has a relatively poor rate of return on asset.The current and quick ratio was decreased in 2012 to 5,02 times and 2,66 time but the business still be able to pay its debt, there is a problem with account receivable because the business still difficult to collect the money from debtor which caused the percentage still increasing and it hard for business to freeing inventory The business is considered good, because low amount of debt, the increasing in...

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Compute Net Accounts Receivable

compute net accounts receivable. a. Accounts Receivable has a balance of $14,000. The Allowance for Uncollectible Accounts has a credit balance prior to adjustment of $300. An aging schedule prepared on December 31 reveals $1,100 of uncollectible accounts. b. Accounts Receivable has a balance of $25,700. The Allowance for Uncollectible Accounts has a debit balance prior to adjustment of $400. An aging schedule prepared on December 31 reveals $2,300 of uncollectible accounts. ...

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Accounts Receivable and Correct Marks

Internal Revenue Service | | | b. U.S. Congress | | | c. Governmental Accounting Standards Board | | | d. Financial Accounting Standards Board | | Correct Marks for this submission: 5/5. Question 5 Marks: 5 The left side of a T-account is known as the: Choose one answer. | a. Debit Side | | | b. Credit side | | | c. Claims side | | | d. Equity side | | Correct Marks for this submission: 5/5. 1 Marks: 5 Product costs are matched against sales revenue...

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Accounting: Accounts Receivable and Voucher

remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts. I think that this could be weak because what I think should happen is that the mail clerk should make the list of the receipts and send it to the manger or supervisor where then it is sent to the account receivable clerk for recording. I think by the mail clerk to just send it to the cashier could leave room for errors or fraud...

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Five basic accounts

Q i) Expalin in detail five basic accounts along with their types and examples Five basic Acounts 1. Assets 2. Liabilities 3. Capital/Owner Equity 4. Revenue/Income 5. Expenses Assets Assets are the resources owened by a business and are expected to give benefit for future operation Example: If you buy a land and it will give benefit in the future operation then it is your asset . if the land which you buy And in future you have to sell only then this is not your asset. If you built...

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receivables

Problem 1 The accounts receivable of FRANCO COMPANY were stated at P1,467,000 in a balance sheet submitted to a banker for credit. You are called upon to audit the report and, upon analysis, the asset was found to consist of the following items: Due from customers on open account P 1,125,000 Acknowledged claim for damages 22,500 Due from consignee at billed price – cost price being P22,500 30,000 Investment in and advances to affiliated company 150...

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Consolidated Accounts Balance Sheet

Consolidated Accounts Balance Sheet • Home Page» • Business & Economy» • Accounting Consolidated Accounts Balance Sheet C UNIT 3: CONSOLIDATED BALANCE SHEET Definition of a Group Under IAS 27 Consolidated and Separate Financial Statements, a group exists where one enterprise (the parent) controls, either directly or indirectly, another enterprise (the subsidiary). A group consists of a parent and its subsidiaries. Definition of Control Under IFRS 3 Business Combinations, control...

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Principles of Accounting 1 chapter 9 notes

Accounts Receivable: an amount due from another party two of the most common are: Accounts Receivable &Notes Receivable others are: interest receivable, rent receivable, tax refund receivable, and receivables from employees Accounts Receivable- are amounts due from customers for credit sales when a company does extend credit directly to customers it: 1. Maintains a separate account receivable for each customer 2. accounts for bad debts from credit sales Recognizing Accounts Receivable: ...

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Acnt 1471

result of sales on credit or on account is a bad debts expense. 2. What is the purpose of the Allowance for Doubtful Accounts? This account is a contra-asset account that accumulates the expected amount of bad debts as of a given date. This account is also a permanent account that is not closed to Income Summary at the end of the year. 3. What is net realizable value? Net realizable value is the amount of accounts receivable that is expected to be collected...

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2007 04 06 163146 Chapter 7 1

reported as cash. 1.Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $980,000; utility deposit paid to gas company $180. $ 2,325,000 Cash balance of $925,000. Only the checking account balance should be reported as cash. The certificates of deposit should be reported as a temporary investment, the cash advance to subsidiary should be reported as accounts receivable, and the utility deposit should be identified as a receivable from the gas company. ...

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Acc/291 Week 1

disposition of accounts receivables? What is their function? Since the majority of US thrive on the use of credit cards, the accounts receivables for a company may no longer be on a cash-to-cash basis. A company may need to sell these accounts to other companies who specialize in handling accounts receivables if they need cash more quickly or if it would be too costly to perform the necessary billing to collect on the account. The entries used to record the disposition when the receivables are sold...

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Accounts Receivable and Debit Credit Balance

J1 Date Account Titles and Explanation Ref. Debit Credit 2014 Cash 101 20,000 May. 1 Common stock 311 20,000 (Issued shares of stock for cash) 3 Supplies 126 1,500 Accounts Payable 201 1,500 (Purchased supplies on account ...

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pro forma

societal awareness of preventative medicine.” For SNC entering into this new market will be monumental step for the entity to posiblly succeed in growth and increased revenues. Looking at the comparative Balance Sheet, the accounts receivables have been declining from 2010-2012. The Income Statement shows that sales have been consistent the cost of sales has shifted causing the EBIT to drop in 2011 and to rise in 2012. Acting as CEO in the first phase of...

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ACC 422 Week 2 INVIDUAL

Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2008, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. Instructions (a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable? (c) What is the...

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ACCT 550 WEEK 4

Balance) 1. Only checking account balance of $925,000 should be reported as cash. Certificate of deposit $1,400,000 is a temporary investment, short – term paper (penalties to early conversion to cash). Cash advance to subsidiary of $980,000 is treated as receivables (assumed to be collectible) and utility deposit to gas company $180 is also receivables. 2. Checking account balance $600,000 Overdraft in special checking account ...

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HI KOBE

The statement of cash flow is used to illustrate the current cash position, liquid assets, and accounts receivable. This report is a good indicator of the operational management of the company and the impact of their accounts receivable collection activities. A company can appear financially sound based on the income statement and balance sheets when it is not. A cash flow statement adds context to the reports and reflects the actual cash position. The financial statement of a company provides...

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ACC 492 Week 2 Apollo Shoe Case Study Guide

Complete the following audit sections: • Revenue and Expenses o Before completing this section, review the material in the Planning section with emphasis on the Trial balances and Apollo Shoes Minutes; and the Accounts Receivable section with emphasis on the Audit of Accounts Receivable – confirmations. • Payroll o Before completing this section, review the material in the Planning section ACC 492 Week 2 Apollo Shoe Case Study Guide www.paperscholar.com DIRECT LINK TO THIS STUDY GUIDE: ...

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Accounting

conception of the preparation of financial statements and the process of preparation in the UK is well regulated. But financial accounting requires a fair amount of flexibility in some certain areas, so the need of judgements and estimations for accounts preparers is demand. Meanwhile it leaves a significant approach in accounting treatments. For example, when organizations decide which of several inventory valuation methods to utilize; managers make decisions regarding depreciation methods and allowances...

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Casa de Diseno

manufacturer. Operating cycle, cash conversion cycle, and negotiated financing needed are determined and compared with industry practices. The student then analyzes the impact of changing the firm’s credit terms to evaluate its management of accounts receivable before making a recommendation. a. Operating cycle (OC) average age of inventory  average collection period  110 days  75 days  185 days Cash conversion cycle (CCC) OCaverage payment period 185 days30 days 155...

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Financial Data

least the line item for provisions for doubtful accounts experienced an 11% increase from 2008 to 2009. This line item can be determined as an estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Many medical entities are affecting usually by this type of typical action which has an overtly negative gain to any operation. As previously stated an Allowance for Doubtful Accounts measures receivables recorded but not expected to be collected. Many...

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Life Is What We Make It

A receivable represents a company’s claim on the assets of another receivable. Account Receivable: is an amount owed by a customer, who has purchased the company’s product or service. Receivables are recorded at the time of the sale. Net Realizable Value: the amount of cash that a company expects to collect from its total or gross accounts receivable balance. It is calculated by subtracting from gross receivables the amount that a company does not expect to collect. ALLOWANCE: the amount...

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Moses San Miguel

occurrence Audit Objectives: Substantiate the existence of receivables and the occurrence of revenue transactions. Prove none of the account receivables are fictitious. Completeness Audit objectives: Establish the completeness of receivables and revenue transactions. Rights and obligations Audit objectives: Determine the client has rights to the recorded receivables. Prove the accounts receivable are collectible in the normal course of business and...

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Happiness Express Inc

Happiness Express Inc. 1. a) The primary audit objectives of confirming a client’s year-end accounts receivable include occurrence and accuracy of realizable value. Auditors would like to make sure that the transaction generating the accounts receivable actually occurs, and that the receivables are recorded at accurate value for the current reporting period. Usually they will send accounts receivable confirmations to client’s customers directly. b) The primary audit objectives of performing...

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3 Golden Rules of Accountancy

credit what goes out [Real Account] Real Accounts – All tangible assets like cash, car, furniture and intangible assets like goodwill, patents (2) Debit the Receiver & Credit the giver [Personal Account] Personal Accounts – Jose, cyndie or any other person or any company’s account in business (3) Debit all the Expenses and losses & Credit all the Incomes and gains. [Nominal Account] Nominal Accounts – All Income, Expenses, Profit, Losses Accounts Note:- (1) Debit if there...

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Bailey Distributing Company: Financial Organizations(Bsc402)

Sold= 65% of Net Sales General and Administrative Expenses= 10% of Net Sales Interest on Increase in Accounts Receivable and Inventory= 12% Taxes= 25% of Before- Tax Income QUESTIONS a. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales2cash discounts) to determine the average daily sales and the accounts receivable balances. b. Determine EOQ before and after the change in the cash discount policy. Translate this...

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ACCT 220 Chapter 4 Fun Quiz

number. 1. _____ The account, Supplies, will appear in the following debit columns of the worksheet. a. Trial balance b. Adjusted trial balance c. Balance sheet d. All of these answer choices are correct 2. _____ If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a a. debit to the owner's capital account. b. debit to the owner's drawings account. c. credit to the owner's capital account. d. credit to the...

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Case Study 1 Fraud

Case Study1: And the Fraud Continues A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls...

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Business Transaction

literature 1.1 – Account Receivable(AR) (AR and Management Policy: Theory and Evidence – Shehzad L. Mian & Clifford W. Smith, Jr) The basis of my subject “Bad debt expense estimation model” stems from account receivable. Account receivable is the term used by companies to describe money owed to them by clients or customers for goods and services provided. Bad debt expense is that portion of account receivables that will not be collected. Therefore, without any receivables a company will not...

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Alcatel Accounting Case

A. What is an account receivable? What other names does it go by? Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to...

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Happiness Express, Inc. Case 2.3

CASE 2.3 Happiness Express, Inc. 1. Identify the primary audit objectives that auditors hope to accomplish by (a) confirming a client’s year-end accounts receivable (b) performing year-end sales cut-off tests. The primary audit objectives that the auditors hope to accomplish by confirming a client’s year-end accounts receivable are existence, completeness, and valuation. By using confirmations, the auditors are hoping that the third party would confirm or deny the stated amount, or add additional...

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accounting post lecture

HW 8 – 1 ACCOUNTS RECEIVABLE JOURNAL ENTRIES Prepare journal entries to record the following transactions: (1) On December 15, 2008, the company recorded $150,000 sales on credit. (2) On December 31, 2008, the company estimated bad debt expenses of $15,000. (3) On January 12, 2009, collect $100,000 worth of accounts receivable. (4) After many collection attempts, the Company determined on June 15, 2009 that it would not collect $10,000 in accounts receivables from Pendant Publishing...

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ACC 492 Week 1 Discussion Questions

Time! 100% Satisfaction Guarantee DESCRIPTION FOR THIS STUDY GUIDE: Dq1 Suppose you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? Where would you go to vouch the credit entries? What would you expect to find? Dq2 What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating...

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ACCT Week 3 Homework

 E6-5 (Computation of Present Value) Using the appropriate interest table, compute the present values of the periodic amounts, shown on page 344, due at the end of the designated periods. (a) $50,000 receivable at the end of each period for 8 periods compounded at 12%. 50,000* 4.9676= $248,380 (b) $50,000 payments to be made at the end of each period for 16 periods at 9%. 50,000* 8.3126= $415,630 (c) $50,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%. 50,000*...

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Oracle Systems Corporation

to the increase in trade receivables in 1990. The balance sheet given indicates that Oracle’s receivables amounted to 82% of its current assets. Current assets were at 72% of total assets. The receivables industry average in 1990 was 31.8% of total assets. This proves that Oracle was performing risky investments. 3. Even though Oracle’s receivables were increasing, their allowances for doubtful accounts were decreasing. Data shows in 1987 ADA was 10.2% of receivables, and in 1990, ADA became...

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Home Office and Branch Accounting

operating a branch in Davao for a year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The transactions for the year are given effect to in the trial balance below: Cash P 8,500 Home Office current P 35,000 Shipments from home office 135,500 Accounts Receivable 25,000 Sales 147,000 Expenses 13,500 _______ P 182,000 ...

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Calculation and Ineterpretation of Financial Ratio of Bp and Shell Between 2009 to 2011

from its receivables and by selling inventories. ACID-TEST RATIOS Quick Asset = Current Assets - Inventories Acid-Test Ratio = Quick Assets /Current Liabilities | | 2010$000 | 2009$000 | Current Assets | 89,725 | 67,653 | Inventories | (26,218) | (22,605) | Quick Assets | 63,507 | 45,048 | Current Liabilities | 82,832 | 59,320 | | 0.8 : 1 | 0.8 : 1 | The traditional rule of thumb for this ratio has been 1:1. Anything below this level requires further analysis of receivables to understand...

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Accounting 110 - Practice Exam W/ Answers

an aging schedule of accounts receivable that shows estimated uncollectible accounts of $5,200. Before journal entries, the Allowance for Doubtful accounts has a debit balance of $300 and Accounts Receivable has a balance of $85,000. 2. On July 5, Morrison was notified that Sperry Ltd has declared bankruptcy and Morrison writes off its A/R of $800. 3. On September 12, Sperry notifies Morrison that it can pay its $800 debt and includes a cheque for the entire amount. Date Account Debit Credit Calculations: ...

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Current and Noncurrent Assets

it can also include resources nor is the limit to one year, it also can be the company’s operating cycle. The time frame depends on the individual company and is whichever one is longer. Current assets are cash, inventories, prepaid expenses, receivables, short-term investments. Noncurrent Assets The next step is learning what noncurrent assets are and how they affect any company. Noncurrent assets are intangible assets, long-term investments, property, plant, and equipment. The investment...

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Essay101

Acc101 – Quiz on Receivables Show your supporting computations in good form. Encircle your final answer. Problem 1 For the year ended December 31, 2009, Colt Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/09 P51,000 Provision for uncollectible accounts during 2009 (2% on credit sales of P2,000,000) 40,000 Uncollectible accounts written off, 11/30/09...

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Unit 2 Assignment

(based on 365-day year): 36.5 days Inventory turnover ratio: 3.75 Partial income Statement information Sales $600,000 Cost of good sold $450,000 Balance sheet Cash $28,000 Accounts payable $110,000 Accounts receivable $60,000 Long term debt $50,000 Inventories $120,000 Common stock $140,000 Fixed assets $192,000 Retained earnings $100,000 Total assets $400,000 Total liabilities and equity $400,000 The formula for Asset Turnover...

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