ACCOUNTS REF IVABLE - Anitin\ Mensurement financial assets zivables~ assets that re present.controctual> _Receivables- initially recognized ot fair valve. plus Geren or macocantert sacash (cash equitalent “tights to ceceive. -cash_or ot otter ascetfrom:_trangucion {transaction price ™seling pice)» another entity —_-_ amount af consideration ~Aransfer from seller to buyer ond Subsequent Measurement vice Verso Sales Discount’ «)Trade Discounts” encourag Examples) == sorters in large Quantities, hide tne true in “Recounts Receivable7 —Recrued Income ___-_=_Voice_ price from competitors. “Notes Receivable__| ~ Deposits __.._:_ “deducted from list price when.determining_ “Loans Receivable __| = Claims Receivable Ane invoice. price The = not reco conled_by.ither buyer the seer — \dvance: Fepocens SAF aT egies eters TATE airy ndles Tethar coursect sess ant so Capitol Asset (Capital Goins Ton) deduced Sram She ino 3 Ordinary Asset. Carinae hy are ecccacriae spa discount period Trade &Non-Tmade Receivable: “accounted for separate, Trnde Receivablesé arisi cof usingss Accounting for Cash Discounts. i) ints CeceiVvaibles and-sales. orservices inthe ordinary. course ogstnon eae souse of, ~cnsiied aS8ien alk ete “aa “pected tn-be cealizedin-casb_uithin the nonal_ ace initinuy ecordea ch amounts. gross of cash Operating a cle or | Year, whichever islonger discounts 02) wit “ye PO Normal of if ordinary course iscounts Ae secate See pid tim Secs scat nent ine pride O55 x a ce = cnssfiea ax cuccent assels.only.uinen ex: £)Net Method occaunts reels andaates pected to be reolized (n cosh within _lycor Oreinitially recorded at amounts netof cash _~ does pat_consider the normol_aperatin aycle_____ _—discounts__ Qe panniers Cosh discounts not token by the buyer_are cre _Uited to “Soles discounts forfeited” account and. Presentatton th ation in Financial statement included os pact-of “other income” ar“ finance incom “Rresentea! in Single ine Aine item Trade ¢ Gnd other _~ cosh discounts token by the buyer is nataccoun Teceivaples Coggre Pace TG ted forMlowance. for Doubtful hecaunts, Rbnoctnal balances in Becca There isariok of loge 9 dni! Credit balance in Arcosints Receivable. rise) 1) Allowance Method ~ allowance. Is capi for ~ yom Overpayments advance. payments orerrors bod debts expense When-the collectibility of o6~ KIR Wistomer A Counts becomes doubtful or questionable ’ begibal. (e000 \o 8 2) direct Write" of: methad~ baddebls’ expenbé {sdi~ ee _rechly written-off Arom Ane bolance’ of accounts em ddvonces from _—P-Les000 end Wal. a cejvable only when the dcounts are deemed wortir AJE _ = E zl —less. wt de |) Recounts Receivable '".6,000 : — no entry is made foraccounts 4 shat ore, remetey Baars nm. gon Aoubtiul of collection sid fet A 5 : ra 2 Debit alonde fn Recounts Raijable 8 ~~ pireet |___Neinoa_"_ from overpay ments, advance payments or errors = Ai Svpelien veel AIR 2H 12,000 b¢q-bal. casi La Gain onBecovery *% end -loal (5,000) “7 advonces. ‘tonne stari! —_— Age T-Receunt choco] ist thitvances'Yo sup. 8,000 —Aiiowance for : Doub} ful, Accounts Accounts. Payable. 8,000 — xh Deg.tbals i wv Writecoff_»: x Recover Tors éf sale ofonfract ~ain10 eisioy tat z ane f Confrt of gant sa aa . x ' ; nek % Et tage ptt eo end.bal. rx = D pei shipment foods 0 ‘For v1 9 Destination Ceceigt lealtestion ancagaition A : Tupon transfer of goods.fownership tote _Ftcight Gnarges 9 ‘ouyer’/customer — Control of ownership wo Mayer hiya) Ay eb 7 = omount- of consideration « sapere fae 4 Weg ja Seiler in Unconaitional vot 2 eee euyer: __Entity.who. owns tne goods being, ehipeed should > pay forthe shipping costs 4FOB shipping point freight prepaid — buyer owns The goods being shit out the seller already paid Ane nipping costs Fo8 destination, freight collect - seller owns _ihe goods being shipped hutthe carrier will be Collecting the shipping costs from the buyer