Pro pe rty, plant, and e quipme nt (PP&E) (alternatively
called p lant as s e ts , fixe d as s e ts , or o pe ratio nal
a s s e ts ) are the tangible noncurrent
Inventory and COGS
Describe the different classifications of inventory and the
flow of costs.
Explain the uses of the perpetual and periodic inventory
Identify the items to be included in inventory.
Bad Debt Expense/Allowance
for Doubtful Accounts
Bad Debt Expense
What are the two methods used to
recognize bad debt expense?
Bad debtNo problem!
Explain the percent of sales method of
recording bad debt.
Sales = $100,000,000
Percent estimated to
The demand for and supply of
Wahlen et al Ch.1
Annual report to shareholders
SEC Form 10-K
SEC Form 10-Q
In accounting, what are we
trying to measure?
Test the asset for impairment
Estimate the future cash flows of the asset
Impairment exists if estimated future cash
exists if estimated future cash
flows are lower than the assets book value
If impairment exists, write-down the