1.

Financial asset that represent a contractual right to

2. Receivables are current if they are realized within
the normal opearting cycle. If it is currently realizabl
3. Customers' credit balance are classified as current
4. In initial measurement, it is measured at face amo
5. Gross method, uses the gross amount of an invoic
6. This is through estimation.
7. Only recognizes bad debts when proven worthless
8.
a. Bad debts expense
Allowance for bad debts

b. Allowance for bad debts

Accounts receivable

c. Accounts receivable
Allowance for bad debts

Cash
Accounts receivable

10. It is a distribution cost if the granting of credit a

charge under an officer other than the sales manager.
at represent a contractual right to receive cash, service or other asset in exchange of good and services.
urrent if they are realized within a year or within the normal operating cycle. It is non current if it is reaized beyond a year and not in
cycle. If it is currently realizable, it is presnseted in one line item, trade and other receivable.
balance are classified as current liability.
ment, it is measured at face amount, while in subsequent, it is measures at net realizable value.
es the gross amount of an invoice. Net amount, uses the net realizable amount of an invoice.

bad debts when proven worthless or uncollectible.

9.
xxx a.
No entry
Allowance for bad debts xxx

ce for bad debts xxx b. Bad debts expense

Accounts receivable xxx Accounts receivable

xxx c. Accounts receivable

Allowance for bad debts xxx Allowance for bad debts

xxx Cash
Accounts receivable xxx Accounts receivable

n cost if the granting of credit and collection of accounts receivable are charge under the sales manager, it is a administrative cost if is
cer other than the sales manager.
ond a year and not in

entry

xxx
xxx

xxx
xxx

xxx
xxx

dministrative cost if is
a. Trade accounts receivable
Trade notes receivable
Installment receivable
Advance payments
Cash advance
Claim receivable
Subscription receivable
Accrued interest receivable
Customer credit balance
Advance payment
Receivables

b. Trade accounts receivable

Allowance for doubtful account
Trade notes receivable
Installment receivable
Advance payments
Claim receivable
Subscription receivable
Accrued interest receivable
Trade and trade receviable

c. Advance payment and credit balance of cutome

Advnaces to subsidiary are non-current asset.
 775,000.00
100,000.00
300,000.00
150,000.00
400,000.00
15,000.00
300,000.00
10,000.00
r credit balance 30,000.00
20,000.00
2,000,000.00

775,000.00
(50,000.00)
100,000.00
300,000.00
150,000.00
15,000.00
300,000.00
10,000.00
1,600,000.00

nd credit balance of cutomer are accounts receivable

ary are non-current asset.
a. Accounts receivable, beg.
Add: Charge sales
Less: Collection from customers
Writeoff
Returns
Allowances to customers
Accounts receivable

b. Subscription
Deposit on contract
Claims
IOU
Cash Advance to affiliates
Advance to suppliers
Accounts receivable

c. Claims
IOU
Advance to suppliers
Accounts receivable
Trade and trade receivable

d. Subscription - should be shown preferably as a deduct

currently.
Cash Advance to affiliates - noncurrent investments
Depositon contract - noncurrent asset
 600,000.00
6,000,000.00
m customers (5,300,000.00)
(35,000.00)
(40,000.00)
(25,000.00)
1,200,000.00

150,000.00
120,000.00
60,000.00
10,000.00
100,000.00
50,000.00
490,000.00

60,000.00
10,000.00
50,000.00
1,200,000.00
1,320,000.00

d be shown preferably as a deduction from subscribed share capital unless collectible

iliates - noncurrent investments

noncurrent asset
 500,000.00
15,000.00
485,000.00

Buyer
1.

2.

3.

4.
Buyer Seller
1. Accounts receivabe
Sales

2. Cash
Sales Discoutn
Accounts receivable

3. Cash
Accounts receivable

4. Sales return
Accounts receivable

5. Sales return
Allowance for sales return
 4,000,000.00
4,000,000.00

1,470,000.00
30,000.00
1,500,000.00

1,000,000.00
1,000,000.00

100,000.00
100,000.00

20,000.00
ce for sales return 20,000.00
 # units
Sale price

Total Sales

1. Accounts receivable
Sales

2. Cash
Sales Discount
Accounts receivable

3 Cash
Accounts receivable
 100
45,000.00

4,500,000.00

4,500,000.00
4,500,000.00

4,410,000.00
90,000.00
Accounts receivable 4,500,000.00

4,500,000.00
Accounts receivable 4,500,000.00
 # units
Sale price

Total Sales

1. Accounts receivable
Sales

2. Cash
Sales Discount
Accounts receivable

3 Cash
Accounts receivable
 50.00
50,000.00

2,500,000.00

2,500,000.00
2,500,000.00

2,450,000.00
50,000.00
Accounts receivable 2,500,000.00

2,500,000.00
Accounts receivable 2,500,000.00
Sales
Cost of goods sold
Gross profit

Accounts receivable
Sales

Sales return
Accounts receivable

Sales return
Allowance for sales return
 4,000,000.00 100%
2,400,000.00 60%
1,600,000.00 40%

4,000,000.00
4,000,000.00

300,000.00
300,000.00

100,000.00
ce for sales return 100,000.00
Trade accounts receivable
Claims againts shippers
Allownce for doubtful accounts
Trade and other receivabels
2,000,000.00
300,000.00
(100,000.00)
2,200,000.00 a.
Acccounts receivable
Credit sales
Sales return
Accounts written off
Collection
Allowance for sales return
Alloance for bad debts
Net realizable value
 1,300,000.00
5,500,000.00
(150,000.00)
(100,000.00)
(5,000,000.00)
(50,000.00)
(250,000.00)
1,250,000.00 b.
Accounts receivable
Credit sales
Collection from customer
Accounts written off
Collection from written off account
Accounts receivable
 1,300,000.00
5,400,000.00
(4,750,000.00)
(125,000.00)
tten off account 25,000.00 xxxx
1,850,000.00
1,825,000.00 a.
Trade accounts receivable
Trade accounts postdated check
Trade installment receivable
Trade accounts receivable
3,500,000.00
200,000.00
800,000.00
150,000.00
4,650,000.00 a.
Accounts receivable,beg
Charge sales
Collection from customer
Writeoff
Accounts receivable

Accounts receivable
Recovered written off acounts
Cash paid to customer
Goods shipped
Claims against carrier
Advances to supplier
Returns
Allowances
Collection on carrier
Trade and other receivables

Subscription
Deposit on long-term
Collection on subscription
other receivable
 530,000.00
5,250,000.00
(5,150,000.00)
(35,000.00)
595,000.00 d.

595,000.00
10,000.00
25,000.00
5,000.00
400,000.00
300,000.00
(25,000.00)
(15,000.00)
(50,000.00)
1,245,000.00 c.

1,000,000.00
500,000.00
(200,000.00)
1,300,000.00 c.
Accounts receivable, beg
Allowance for doubtful accounts
Sales
Collection from credit customer
Sales return and allowances
Writeoff
Recovered writtenoff accounts
Accounts receivable

Allowance for doubtful accounts

Recovered writtenoff accounts

Writeoff
Allowance fro doubtful account
 950,000.00
tful accounts (100,000.00) xxxx
3,800,000.00
dit customer (3,150,000.00)
(250,000.00)
(50,000.00)
80,000.00 xxxx
1,300,000.00 a.

tful accounts 100,000.00

70,000.00
80,000.00
(50,000.00)
200,000.00 b.