ACC102-W01-02 Chapter 9
ACC102-W01-02 Chapter 9
ACC102-W01-02 Chapter 9
Identify the different types of receivables. Explain how companies recognize accounts receivable. Distinguish between the methods and bases companies use to value accounts receivable. Describe the entries to record the disposition of accounts receivable. Compute the maturity date of and interest on notes receivable. Explain how companies recognize notes receivable. Describe how companies value notes receivable. Describe the entries to record the disposition of notes receivable. Explain the statement presentation and analysis of receivables. (ignore)
Types of Receivables
Accounts receivable Notes receivable Other receivables
Accounts Receivable
Recognizing accounts receivable Valuing accounts receivable Disposing of accounts receivable
Notes Receivable
Determining maturity date Computing interest Recognizing notes receivable Valuing notes receivable Disposing of notes receivable
Chapter 9-3
Claims for which formal instruments of credit are issued as proof of debt. Notes Notes Receivable Receivable
Nontrade (interest, loans to officers, advances to employees, and income taxes refundable).
Chapter 9-5
Chapter 9-6
Illustration: On July 11, Jordache receives payment from Polo Company for the balance due. Jul. 11 Cash Sales discounts ($900 x .02) Accounts receivable
Chapter 9-7
882 18 900
Chapter 9-8
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Allowance Method
Losses are estimated: better matching. receivable stated at net realizable value. required by GAAP.
Chapter 9-9
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-10
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-12
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-13
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-14
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-15
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-16
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-17
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-18
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-19
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Occasionally the allowance account will have a debit balance prior to adjustment.
Chapter 9-20
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-21
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
=================================================== What should the ending balance be for the allowance account? -- Case 1 and Case 2
Chapter 9-23
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
6,250 6,250
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
=================================================== What should the ending balance be for the allowance account? -- Case 1 and Case 2
Chapter 9-25
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
5,650 5,650
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
5,950 5,950
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-28
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-29
SO 3 Distinguish between the methods and bases companies use to value accounts receivable.
Chapter 9-30
Chapter 9-31
Chapter 9-33
Chapter 9-34
Chapter 9-35
Chapter 9-37
Computing Interest
Illustration 9-13
Chapter 9-38
Chapter 9-39
Nov. 1
Notes receivable
Cash Dec. 11 Notes receivable Sales Dec. 16 Notes receivable Accounts receivable
Chapter 9-41
295 295
Chapter 9-42
Chapter 9-43
Chapter 9-44
Chapter 9-45
300
300 *
Chapter 9-47
Chapter 9-49
(a) (b)
7,600 7,600
(c)
7,600 7,600
When there is no hope of collection, the note holder would write off the face value of the note. No interest revenue would be recorded because collection will not occur.
Chapter 9-52
I/S
Chapter 9-53
Chapter 9-57
Chapter 9-59