Receivables receivables nontrade receivables 1 2 3 4

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Unformatted text preview: Receivable Receivable Receivable Notes Notes Notes Notes Receivable Receivable Receivable Receivable Chapter 7-10 LO 3 Define receivables and identify the different types of receivables. Receivables Receivables Nontrade Receivables 1. 2. 3. 4. 5. 6. Advances to officers and employees. Advances to subsidiaries. Deposits to cover potential damages or losses. Deposits as a guarantee of performance or payment. Dividends and interest receivable. Claims against: a) b) c) d) e) f) Chapter 7-11 Insurance companies for casualties sustained. Defendants under suit. Governmental bodies for tax refunds. Common carriers for damaged or lost goods. Creditors for returned, damaged, or lostgoods. Customers for returnable items (crates, containers, etc.). LO 3 Define receivables and identify the different types of receivables. Receivables Receivables Nontrade Receivables Illustration 7-3 Chapter 7-12 LO 3 Define receivables and identify the different types of receivables. Recognition of Accounts Receivables Recognition of Accounts Receivables Trade Discounts Trade Discounts Reductions from the list price Reductions from the list price Not recognized in the Not recognized in the accounting records accounting records Customers are billed net of Customers are billed net of discounts discounts Chapter 7-13 10 % Discount for new Retail Store Customers LO 4 Explain accounting issues related to recognition of accounts receivable. Recognition of Accounts Receivables Recognition of Accounts Receivables Cash Discounts Cash Discounts Inducements for prompt payment Inducements for prompt payment Gross Method vs. Net Gross Method vs. Net Method Method Chapter 7-14 Payment terms are 2/10, n/30 LO 4 Explain accounting issues related to recognition of accounts receivable. Recognition of Accounts Receivables Recognition of Accounts Receivables Cash Discounts (Sales Discounts) Illustration 7-4 Chapter 7-15 LO 4 Explain accounting issues related to recognition of accounts receivable. Recognition of Accounts Receivables Recognition of Accounts Receivables E7-5: On June 3, Bolton Company sold to Arquette Company merchandise having a sale price of $2,000 with terms of 2/10, n/60, f.o.b. shipping point. On June 12, the company received a check for the balance due from Arquette Company. Prepare the journal entries on Bolton Company books to record the sale assuming Bolton records sales using the gross method. June 3 Accounts receivable 2,000 Sales June 12 Cash ($2,000 x 98%) Sales discounts Accounts receivable Chapter 7-16 2,000 1,960 40 2,000 LO 4 Explain accounting issues related to recognition of accounts receivable. Recognition of Accounts Receivables Recognition of Accounts Receivables E7-5: On June 3, Bolton Company sold to Arquette Company merchandise having a sale price of $2,000 with terms of 2/10, n/60, f.o.b. shipping point. On June 12, the company received a check fo...
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This document was uploaded on 02/08/2014.

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