财务会计英语 ch08

Chapter8ReceivablesAccounting,21stEditionWarrenReeveFessPowerPointPresentationbyDouglasCloudProfessorEmeritusofAccountingPepperdineUniversity©Copyright2004South-Western,adivisionofThomsonLearning.Allrightsreserved.TaskForceImageGalleryclipartincludedinthiselectronicpresentationisusedwiththepermissionofNVTechInc.Someoftheactionhasbeenautomated,soclickthemousewhenyouseethislightningboltinthelowerright-handcornerofthescreen.Youcanpointandclickanywhereonthescreen.1.Listthecommonclassificationsofreceivables.2.Summarizeandprovideexamplesofinternalcontrolproceduresthatapplytoreceivables.3.Describethenatureofandtheaccountingforuncollectiblereceivables.4.Journalizetheentriesfortheallowancemethodofaccountingforuncollectibles,andestimateuncollectiblereceivablesbasedonsalesandonananalysisofreceivables.ObjectivesAfterstudyingthischapter,youshouldbeableto:5.Journalizetheentriesforthedirectwrite-offofuncollectiblereceivables.Objectives6.Describethenatureandcharacteristicsofpromissorynotes.7.Journalizetheentriesfornotesreceivabletransactions.8.PreparetheCurrentAssetspresentationofreceivablesonthebalancesheet.9.Computeandinterprettheaccountsreceivableturnoverandthenumberofdays’salesinreceivables.ClassificationofReceivablesAccountsReceivable—usedforsellingmerchandiseorservicesoncredit,andnormallyexpectedtobecollectedinarelativelyshortperiod.NotesReceivable—usedtograntcreditonthebasisofaformalinstrumentofcredit,calledapromissorynote.OtherReceivables—includeinterestreceivable,taxesreceivable,andreceivablesfromofficersandemployees.Acctg.InfoCollectionsInvoiceAcctg.Info.AccountingGoodsorservicesSalesSeparatingtheReceivableFunctionsCreditInfo.CreditApprovalUncollectibleReceivablesCompaniesoftenselltheirreceivablestoothercompanies.Thistransactioniscalledfactoringthereceivables,andthebuyerofthereceivablesiscalledafactor.UncollectibleReceivablesThismethodisconsistentwiththematchingprinciple.Managementmakesanestimateeachyearoftheportionofaccountsreceivablethatmaynotbecollectible.UncollectibleAccountsExpenseisdebitedandAllowanceforDoubtfulAccountsiscredited.ActualaccountsthatprovetobeuncollectiblearedebitedtoAllowanceforDoubtfulAccountsandcreditedtoAccountsReceivable.TheAllowanceMethodTheAllowanceMethodDec.31UncollectibleAccountsExpense400000AllowanceforDoubtfulAccounts400000OnDecember31,CynthiaRichardsestimatesthatatotalof$4,000ofthe$105,000balanceinhercompany’sAccountsReceivablewilleventuallybeuncollectible.AdjustingEntryThenetamountthatisexpectedtobecollected,$101,000($105,000–$4,000),iscalledthenetrealizablevalue(NRV).TheAllowanceMethodTheadjustingentryreducesreceivablestotheNRVandmatchesuncollectibleexpenseswithrevenues.Theadjustingentryfillsthebucket.AllowanceforDoubtfulAccountsTheAllowanceMethodWritingoffaccountsemptiesthebucket.TheAllowanceMethodOnJanuary21,JohnParker’saccounttotaling$610isconsideredtobeuncollectible.Jan.21AllowanceforDoubtfulAccounts61000AccountsReceivable—JohnParker61000Towriteofftheuncollectibleaccount.TheAllowanceMethodOnJune10,thewritten-offaccountiscollected.Jun.10AccountsReceivable—JohnParker61000ToreinstatetheaccountwrittenoffonJan.21.AnentryismadetoreinstateJohnParker’saccount.AllowanceforDoubtfulAccounts61000TheAllowanceMethodAsecondentryismadetorecordreceiptofthecash.Jun.10Cash61000AccountsReceivable—JohnParker61000Torecordcollectiononaccount.TheAllowanceMethodEstimatingUncollectibleAccountsExpense1.Estimatebasedonapercentageofsales.Ifcreditsalesfortheperiodare$300,000anditisestimatedthat1%willbeuncollectible,theUncollectibleAccountsExpenseis$3,000.TheallowancemethodusestwowaystoestimatetheamountdebitedtoUncollectibleAccountsExpense.TheAllowanceMethodDec.31UncollectibleAccountsExpense300000AllowanceforDoubtfulAccounts300000AdjustingEntryBasedonaPercentageofSalesTheAllowanceMethodEstimatingUncollectibleAccountsExpenseTheallowancemethodusestwowaystoestimatetheamountdebitedtoUncollectibleAccountsExpense.2.Estimatebasedonanalysisofreceivables.Ifitisestimatedthat$3,390ofthereceivableswillbeuncollectibleandtheAllowanceforUncollectibleAccountscurrentlyhasabalanceof$510,theUncollectibleAccountsExpensemustbedebitedfor$2,880($3,390–$510).TheAllowanceMethodDec.31UncollectibleAccountsExpense288000AllowanceforDoubtfulAccounts288000AdjustingEntryBasedonanAnalysisofReceivablesTheAllowanceMethodAccountsReceivableAgingandUncollectiblesNotDaysPastDuePastoverCustomerBalanceDue1-3031-6061-9091-180181-365365Ashby&Co.$150$150B.T.Barr610$350$260BrockCo.470$470SaxonWoods160160Total$86,300$75,000$4,000$3,100$1,900$1,200$800$300Totalaccountsreceivableshownbyage.2%5%10%20%30%50%80%UncollectiblesPERCENTUncollectiblepercentagesbasedonexperienceandindustryaverages.AccountsReceivableAgingandUncollectiblesNotDaysPastDuePastoverCustomerBalanceDue1-3031-6061-9091-180181-365365Ashby&Co.$150$150B.T.Barr610$350$260BrockCo.470$470SaxonWoods160160Total$86,300$75,000$4,000$3,100$1,900$1,200$800$3002%5%10%20%30%50%80%UncollectiblesPERCENTAMOUNT$3,390=$1,500$200$310$380$360$400$240AccountsReceivableAgingandUncollectiblesNotDaysPastDu