Accounting Notes

Accounting Notes - Journal entry to write off a bad...

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Unformatted text preview: Journal entry to write off a bad account: Dr. Allowance for Doubtful Accounts………………………………………………………..2390 cr Accounts Recievable…………………………………………………………………………………2390 Calculating Interest: Interest (I) = Principal (P) x Interest Rate (R) x Time (T) *time will (normally) be the number of months/12 Receivable Turnover Ratio: Net Sales Revenue (for the current year) Average Net Receivables (Beginning Net Receivables + Ending Net Receivables / 2) Days to Collect: 365/Receivable Turnover Ratio *The higher the Receivable Turnover Ratio, the faster the company is collecting the receivables. The five general principles of internal control: 1. Establish Responsibility 2. Segregate Duties 3. Restrict Access 4. Document Procedures 5. Independently Verify Gross Profit %: Gross Profit x 100 Net Sales Cost of Goods Sold Calculation: Beginning Inventory + Purchases = Cost of Goods Available for Sale - Cost of Goods Sold =Ending Inventory ...
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This note was uploaded on 02/22/2012 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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