Chapter 9 Study Guide

Chapter 9 Study Guide - CHAPTER 9 Accounting for...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 9 Accounting for Receivables STUDY OBJECTIVES 1. IDENTIFY THE DIFFERENT TYPES OF RECEIVABLES. 2. EXPLAIN HOW COMPANIES RECOGNIZE ACCOUNTS RECEIVABLE IN THE ACCOUNTS. 3. DISTINGUISH BETWEEN THE METHODS AND BASES USED TO VALUE ACCOUNTS RECEIVABLE. 4. DESCRIBE THE ENTRIES TO RECORD THE DISPOSITION OF ACCOUNTS RECEIVABLE. 5. COMPUTE THE MATURITY DATE OF AND INTEREST ON NOTES RECEIVABLE. 6. EXPLAIN HOW COMPANIES RECOGNIZE NOTES RECEIVABLE IN THE ACCOUNTS. 7. DESCRIBE HOW COMPANIES VALUE NOTES RECEIVABLE.
Background image of page 1

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

View Full DocumentRight Arrow Icon
8. DESCRIBE THE ENTRIES TO RECORD THE DISPOSITION OF NOTES RECEIVABLE. 9. EXPLAIN THE STATEMENT PRESENTATION AND ANALYSIS OF RECEIVABLES.
Background image of page 2
CHAPTER REVIEW Types of Receivables 1. (S.O. 1) Receivables are claims that are expected to be collected in cash. The three major classes of receivables are usually classified as: (a) accounts, (b) notes, and (c) other. 2. Accounts receivable are amounts owed by customers on account. Notes receivable represent claims for which formal instruments of credit are issued as evidence of debt. And other receivables include nontrade receivables such as interest receivable, loans to company officers, advances to employees, and income taxes refundable. Recognizing Accounts Receivable 3. (S.O. 2) When a business sells merchandise to a customer on credit, Accounts Receivable is debited and Sales is credited. 4. If a payment is received by a customer within the discount period, the following entry is made: Cash. .......................................................................................... XXX Sales Discounts. ........................................................................ XXX Accounts Receivable. ........................................................... XXX Valuing Accounts Receivable 5. (S.O. 3) In accounting, credit losses are debited to Bad Debts Expense or Uncollectible Accounts Expense. Such losses are considered to be a normal and necessary risk of
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/10/2011 for the course ACCOUNTING 510 taught by Professor Havens during the Spring '11 term at Davenport.

Page1 / 7

Chapter 9 Study Guide - CHAPTER 9 Accounting for...

This preview shows document pages 1 - 4. Sign up to view the full document.

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