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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12/31/2012 01/05/2013 Num 3 Account Accounts Receivable Accounts Receivable Total Ahmadrand‚ Ela Andrews Productions Invoice Accounts Receivable 12/31/2012 Total Andrews Productions Clark‚ Binsley‚ and Basil‚ CPA Invoice 12/31/2012 Invoice 01/05/2013 5 Accounts Receivable Accounts Receivable Total Clark‚ Binsley‚ and Basil‚ CPA Creative Products Invoice 12/31/2012 Accounts Receivable Total Creative Products Design Creations Invoice 12/31/2012 Accounts Receivable Total Design Creations Duncan
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CHAPTER 7 Cash and Receivables ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. Accounting for cash. Accounting for accounts receivable‚ bad debts‚ other allowances. Accounting for notes receivable. Assignment and factoring of accounts receivable. Analysis of receivables. Petty cash and bank reconciliations. Questions 1‚ 2‚ 3‚ 4‚ 21 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12‚ 13‚ 14‚ 15 14‚ 15 16‚ 17‚ 18‚ 19 20 22 Brief Exercises 1 2‚ 3‚ 4‚ 5 Concepts Exercises 1‚ 2 3‚ 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12 18‚ 19
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company would not regard its accounts receivable as revenue. To find cash basis revenue‚ we have to subtract the increase in accounts receivable from the revenue figure: Accrual basis revenue $1‚750‚000 + Beginning accounts receivable balance 375‚000 - Ending accounts receivable balance (505‚000) - Write-offs of accounts receivable ____(20‚000) Cash basis revenue (cash collections on accounts receivable) $1‚600‚000 Alternate Solution: Accounts Receivable Beginning balance $375‚000
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Affiliation In this case without reclassification of accounts receivable‚ net cash that is utilized in operation is given as; Net Income $60000 Decrease or (Increase) in accounts receivable ($80000) Net amount provided in operation ($20000) If there is reclassification as anticipated‚ the net cash used in operation is; Net Income $60000 Net income provided in operation $60000 Through reclassification of $80000 of accounts receivables to long term‚ the cash inflow from operation will also increase
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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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456 Chapter Eleven Appendix 11B Illustrative Audit Case: Keystone Computers & Networks‚ Inc. Part III: Substantive Tests—Accounts Receivable and Revenue This part of the audit case illustrates the manner in which the auditors design substantive tests of balances. The substantive tests are illustrated for two accounts—receivables and revenue. This aspect of the audit is illustrated with the following audit documentation: • ABC’s risk assessment working paper that combines the auditors’ assessments
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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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AC 210 – Spring 2012 Exam 2 Version A Name: CWID: Score: /100 1. McKinney‚ Inc has a debt-to-assets ratio of 0.45. This means that: A. stockholders’ equity is 55% of total assets. B. stockholders’ equity is 45% of total assets. C. the asset turnover ratio also is 0.55. D. the asset turnover ratio also is 0.45. 2. A company files a Form 10-K with the SEC to submit its: A. quarterly report. B. annual report. C. press releases. D. report
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What were the accounts receivable (net) for Coca-Cola and PepsiCo at the end of 2011? Which Company reports the greater allowances for doubtful accounts (amount and percentage of gross receivable) at the end of 2011? 1. The accounts receivable (net) for Coca-Cola as of Dec. 31‚ 2011 are unknown. Coca-Cola did not provide either a Balance Sheet or the balance on this account on their 2011 annual report. 2. The accounts receivable (net) for PepsiCo‚ including notes receivable‚ as of Dec. 31
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