Chap7MAF3e

Chap7MAF3e - Financial and Managerial Accounting Chapter 7...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial and Managerial Accounting Chapter 7 Accounts & Notes Receivable McGraw-Hill/Irwin .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accounts Receivable Amounts due from customers for credit sales. Credit sales require: Maintaining a separate account receivable for each customer. Accounting for bad debts that result from credit sales. 7-2
Background image of page 2
Recognizing Accounts Receivable $43 Mil. $9.392 Mil. $118 Mil. $109 Mil. Percentage of total assets 7-3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
On July 16, Barton, Co. sells $950 of merchandise on credit to Webster, Co., and $1,000 of merchandise on account to Matrix, Inc. Sales on Credit Jul. 16 Accounts Receivable - Webster 950 Sales 950 To record credit sales to Webster Co. Accounts Receivable - Matrix 1,000 1,000 To record credit sales to M atrix, Inc. 7-4
Background image of page 4
Sales on Credit Date PR Debit Credit Balance Jul. 16 950 950 Matrix, Inc. Date PR Debit Credit Balance Jul. 16 1,000 1,000 Accounts Receivable Ledger Webster, Co. Webster, Co. 950 $ Matrix, Inc. 1,000 Total 1,950 $ Schedule of Accounts Receivable Date PR Debit Credit Balance Jul. 16 1,950 1,950 General Ledger Accounts Receivable 7-5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
On July 31, Barton, Co. collects $500 from Webster, Co., and $800 from Matrix, Inc. on account. Sales on Credit Jul. 31 Cash 500 Accounts Receivable - Webster 500 To record cash collections on account 800 Accounts Receivable - Matrix 800 7-6
Background image of page 6
Sales on Credit Date PR Debit Credit Balance Jul. 16 950 950 Jul. 31 500 450 Matrix, Inc. Date PR Debit Credit Balance Jul. 16 1,000 1,000 Jul. 31 800 200 Accounts Receivable Ledger Webster, Co. Webster, Co. 450 $ Matrix, Inc. 200 Total 650 $ Schedule of Accounts Receivable Date PR Debit Credit Balance Jul. 16 1,950 1,950 Jul. 31 1,300 650 General Ledger Accounts Receivable 7-7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Advantages of allowing customers to use credit cards: Customers’ credit is evaluated by the credit card issuer. The risks of extending credit are transferred to the credit card issuer. Cash collections are quicker. Sales increase by providing purchase options to the customer. Credit Card Sales 7-8
Background image of page 8
With bank credit cards, the seller deposits the credit card sales receipt in the bank just like it deposits a customer’s check. The bank increases the balance in the company’s checking account. The company usually pays a fee of 1% to 5% for the service. Credit Card Sales 7-9
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
On July 16, 2009, Barton, Co. has a bank credit card sale of $500 to a customer. The bank charges a processing fee of 2%. The cash is received immediately. Credit Card Sales Jul. 16 Cash 490 Credit Card Expense 10 Sales 500 To record credit card sales and fees 7-10
Background image of page 10
On July 16, 2009, Barton, Co. has a bank credit card sale of $500 to a customer. The bank charges a processing fee of 2%. Barton remits the credit card sale to the credit card company and waits for the payment that is received on July 28.
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/13/2009 for the course ACC 201 taught by Professor Fielder during the Fall '08 term at Syracuse.

Page1 / 42

Chap7MAF3e - Financial and Managerial Accounting Chapter 7...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online