Accounting Principles Accounting for Receivables参考.pptx

9Accounting for ReceivablesLearning ObjectivesExplain how companies recognize accounts receivable.1Describe how companies value accounts receivable and record their disposition.2Explain how companies recognize notes receivable.3Describe how companies value notes receivable, record their disposition, and present and analyze receivables.4Explain how companies recognize accounts receivable.LEARNINGOBJECTIVE1Amounts due from individuals and other companies that are expected to be collected in cash.Amounts owed by customers on account that result from the sale of goods and services.Written promise for amounts to be received. Normally requires the collection of interest.Nontrade receivables such as interest, loans to officers, advances to employees, and income taxes.Accounts ReceivableNotes ReceivableOther ReceivablesLO 1Types of ReceivablesAmounts due from individuals and other companies that are expected to be collected in cash.Illustration 9-1Receivables as a percentageof assetsLO 1Types of ReceivablesThree accounting issues:Recognizing accounts receivable.Valuing accounts receivable.Disposing of accounts receivable.Recognizing Accounts ReceivableService organization records a receivable when it performs service on account. Merchandiser records accounts receivable at the point of sale of merchandise on account.LO 1Recognizing Accounts ReceivablesIllustration: Assume that Jordache Co. on July 1, 2017, sells merchandise on account to Polo Company for $1,000 terms 2/10, n/30. Prepare the journal entry to record this transaction on the books of Jordache Co.Jul. 1Accounts Receivable 1,000Sales Revenue 1,000LO 1Recognizing Accounts ReceivablesIllustration: On July 5, Polo returns merchandise worth $100 to Jordache Co. Jul. 5Sales Returns and Allowances 100Accounts Receivable 100Illustration: On July 11, Jordache receives payment fromPolo Company for the balance due.Jul. 11Cash 882Sales Discounts ($900 x .02) 18Accounts Receivable 900LO 1ANATOMY OF A FRAUDTasanee was the