30 end 10 lo 4 explain accounting issues related to

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Unformatted text preview: r Accounts Receivable Accounting for Accounts Receivable Accounting Write­off of uncollectible accounts for $10 Write­off of uncollectible accounts for $10 Allowance for Doubtful accounts Allowance for Doubtful accounts Accounts receivable Accounts receivable Accounts Receivable Beg. 100 25 Chapter 7-24 257 333 W/O W/O Beg. 15 Coll. 10 End. 10 10 Allowance for Doubtful Accounts 500 Sale 10 10 Est. 30 End. 10 LO 4 Explain accounting issues related to recognition of accounts receivable. Accounts Receivable – B/S Presentation Accounts Receivable – B/S Presentation Assets Current Assets: Cash Accounts receivable, net of $30 allowance I nventory P repaids Total current assets Fixed Assets: Office equipment Furniture & fixtures Less: Accumulated depreciation Total fixed assets Total Assets Chapter 7-25 $ $ 13 227 812 40 1,092 5,679 6,600 (3,735) 8,544 9,636 LO 4 Explain accounting issues related to recognition of accounts receivable. Valuation of Accounts Receivable Valuation of Accounts Receivable Uncollectible Accounts Receivable Selling on credit raises the possibility (and likelihood) of experiencing an uncollectible account. This is a loss of revenue that requires: a decrease of the NRV of A/R AND a corresponding decrease in income and R/E (when expense accounts are CLOSED to R/E at period end). Chapter 7-26 LO 5 Explain accounting issues related to valuation of accounts receivable. Valuation of Accounts Receivable Valuation of Accounts Receivable Methods of Accou...
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