Chp7 - Chp 7 Cash and Receivables Anthony A Meder Ph.D...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chp. 7: Cash and Receivables Anthony A. Meder, Ph.D. October 18 and 20
Background image of page 1

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

View Full DocumentRight Arrow Icon
CASH Internal controls: KEY—separate duties For receipts, a different person should Open mail and create checks received list Another preps bank deposit A third handles posting to the accounting system For disbursements PAY BY CHECK—creates a record Authorize disbursements…verify via P.O., invoice, Bills of lading Finally, few authorized signators
Background image of page 2
Restricted cash As implied by title, a cash asset (an amount of cash) that is held for a specific purpose Could be informal or contractual Manager may ‘set aside’ cash for a particular investment OR… bank may require a ‘compensating balance’ Bank will give a loan, but require a savings (or other type) of deposit.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Accounts Receivable topics Initial valuation What is the initial value we enter as A/R? Net sales value Subsequent valuation Sales returns Allowance for uncollectible accounts When an account is deemed uncollectible What if that account is subsequently collected
Background image of page 4
Gross sales is just the amount we sold product for. Credit sale creates a receivable. Cash Discount (aka Sales Discount) A discount offered to our customer if that customer pays quickly Typical notation: 2/10, n/30 2% discount for payment within 10 days; net amount due within 30 days. Portion paid within 10 days gets the discount
Background image of page 5

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

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton.

Page1 / 18

Chp7 - Chp 7 Cash and Receivables Anthony A Meder Ph.D...

This preview shows document pages 1 - 6. Sign up to view the full document.

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