Professional Documents
Culture Documents
c e iv
Re p t e r 9
a Chaa
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Classification of Receivables
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Uncollectible Receivables
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Direct Write-Off Method
Reinstatement
entry
Receipt of
cash entry
Learn
i ng O
bj ectiv
accou
Desc
nting
r i be t
he all
e 4
g for l
unco owance m
llecti
ble re ethod of
ceiva
bles
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
The Allowance Method
Reinstatement
entry
Receipt of
cash entry
Estimating Uncollectibles
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Comparing Methods
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of Notes Receivable
(continued)
Characteristics of Notes Receivable
Answer: June 14
DUE DATE OF A
90-DAY NOTE
Accounting for Notes Receivable
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
REPORTING
RECEIVABLES ON
THE BALANCE
SHEET
Learn
i ng O
Desc bj e ctive
8
ribe a
recei n d i ll
sales v u
in r able turn strate th
re no e
efficiceivables ver and n use of ac
ency t u c
in co o evaluate mber of dounts
llecti
ng its a compa ays’
recei ny’s
vable
s.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Accounts Receivable Turnover
Accounts
Net Sales
Receivable =
Turnover Average Accounts
Receivable
ACCOUNTS RECEIVABLE
TURNOVER
Number of Days Sales in Receivables