会计学原理英文课件Chapter_09ACCOUNTING FOR RECEIVABLES教学教材.pptVIP

ACCOUNTING FOR RECEIVABLES;ACCOUNTS RECEIVABLE;RECOGNIZING ACCOUNTS RECEIVABLE; TechCom as two major credit customers (1) CompStore owes the company $2,000 on account, and (2) RDA Electronics owes $1,000 on account at June 30, 2009. On July 1st, TechCom sells $950 of merchandise on account to CompStore, and collects $720 cash from RDA as a payment on account.;SALES ON CREDIT;CREDIT CARD SALES;INSTALLMENT ACCOUNTS RECEIVABLE; Some customers may not pay their account. Uncollectible amounts are referred to as bad debts. There are two methods of accounting for bad debts: Direct Write-Off Method Allowance Method; On January 23rd, J. Kent, a customer of TechCom cannot pay the $520 owed to TechCom. We must recognize the loss. ; On March 11th, J. Kent was able to make full payment to TechCom for the amount previously written-off.;At the end of each period, estimate total bad debts expected to be realized from that period’s sales. There are two advantages to the allowance method: It records estimated bad debts expense in the period when the related sales are recorded. It reports accounts receivable on the balance sheet at the estimated amount of cash to be collected.;RECORDING BAD DEBTS EXPENSE;BALANCE SHEET PRESENTATION;Two Methods Percent of Sales Method Accounts Receivable Methods Percent of Accounts Receivable Aging of Accounts Receivable;Bad debts expense is computed as follows:;Musicland’s accountant computes estimated Bad Debts Expense of $2,400.;Compute the estimate of the Allowance for Doubtful Accounts.  Bad Debts Expense is computed as:;Musicland has $50,000 in accounts receivable and a $200 credit balance in Allowance for Doubtful Accounts on December 31, 2009. Past experience suggests that 5% of receivables are uncollectible. Let’s record Musicland’s Bad Debts Expense for 2009.;Desired balance in Allowance for Doubtful Accounts.; Each receivable is grouped by how long it is past its due date.; ;Musicland has an unadjusted credit balance in t