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Assets assets 140 allow liab na c stock ret

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Unformatted text preview: Stock + Ret. Earn. n/a - 140 Income Statement: net income decreased by $140 (1) $4,000 x .04 = $160 (2) (160 – 20) Statement of Changes in Equity: equity decreased Statement of Cash Flows: cash flow was not affected affected Selected T-accts for Our Co. Selected Cash xx beg. bal. 6,000 Accts Rec. 1,050 (bal.) 6,000 9,000 50 4,000 (bal.) Allow. for Doubt. Acc. 50 (bal.) 70 (bal.) 20 (bal.) 140 Revenue 9,000 Bad Debt Expense 140 Acct. Rec. Efficiencies Ratios Acct. Other things being equal, the less Other receivables a company can “carry” and the more quickly the receivables can be collected, the better. collected, Two related ratios help assess how well Two receivables are being managed: receivables Accts. rec. turnover: Sales . Accts. Accounts. Receivable Accounts. Av. days to collect: Av. 365 days . Accts. Rec. Turnover Accts. Issuing a Note Receivable Issuing On October. 1, 20X1, Our Co. loaned $10,000 to On one of its suppliers by accepting a Note Receivable. The note carries an interest a rate of 6%, The lo...
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