会计英语第五章.ppt

The classification of the notes receivable Notes receivable according to the length of the payback period, the instrument can be divided into sight and forwards two kinds. In our country, in addition to the commercial bill of exchange, such as checks, cashiers cheque, bank draft bill is a sight bill. Therefore, notes receivable is mainly refers to commercial bills receivable.  recording receipt and collection of note to record revenue earnd, the general format for the entry to record the receipt of a note is: Notes receivable-x co xxx sales revenue xxx when cash is collected,the note receivable is credited and interest is credited for any interest earned during the period .the general format for the jounrnal entry is: Cash xxx notes receivable-x co xxx interest earned xxx for an extension of a past-due account receivable,the general format for the entry is: Notes receivable xxx accounts recevable-x co xxx example On march 1,LRC company accepted a $1000,10％，six-month note and cash of $750 in exchange for a past-due account receivable belonging to AJ Inc. The entry to record the exchange on March 1 is: Notes recevable 1000 Cash 750 accounts recevable-AJ Inc 1750 The entry to record the collection of the note on the maturity date is: Cash 1050 note receivable 1000 interest revenue 50 1000×10％×6/12=50 End-of-period adjustments Based on accrual accounting,any interest earned but not yet received as of the end of the month must be recorded.For example,a $1000 note dated November 20,20×2，due in 60 days,with 12％ interest,is recorded as follow: Dec. 31,20×2 interest receivable 134.79 interest earned