lecturech8[1]——receivables,assessing the net realizable value of accounts receivable

《lecturech8[1]——receivables,assessing the net realizable value of accounts receivable》由会员上传分享，免费在线阅读，更多相关内容在教育资源-天天文库。

1、CHAPTER8RECEIVABLESI.AssessingtheNetRealizableValueofAccountsReceivableA.Estimatingthenetrealizablevalueofreceivables:1.Thefullamountofreceivablesmaynotbecollectibleeitherbecausecustomers:a.Areunabletopay(referredtoasuncollectibles),orb.Returnthemerchandiseforcreditorareallow

2、edareductionintheamountowed(referredtoasreturnsandadjustments).2I.AssessingtheNetRealizableValueofAccountsReceivableA.Estimatingthenetrealizablevalueofreceivables:2.Theselossesareanunavoidableconsequenceofthetrade-offbetweenincreasedcostsandadditionalprofitsfromcreditsales.3I

3、.AssessingtheNetRealizableValueofAccountsReceivableSalestocustomerswhoareultimatelyunabletopayaretreatedas:1.TheentryunderGAAPis:DRBaddebtexpense$30,000CRAllowanceforuncollectibles$30,000Expensesoftheperiodinwhichthesalesaremadetofollowthematchingprinciple.Mostlikelythiswillb

4、eanESTIMATE!4I.AssessingtheNetRealizableValueofAccountsReceivableAllowanceForUncollectiblesHowtheAllowanceAccountWorksEstimateofUncollectiblesInthePeriodofSaleActualUncollectiblesWhenKnownContra-AssetAccounttoA/R5I.AssessingtheNetRealizableValueofAccountsReceivableAllowanceF

5、orUncollectiblesBeg.BalanceXXBadDebtsExpense(Estimate)XXHowtheAllowanceAccountWorksActualCustomerWrittenOffEndingBalanceXX6I.AssessingtheNetRealizableValueofAccountsReceivableTheallowanceforuncollectiblesisacontra-assetaccountthatissubtractedfromgrossaccountsreceivable.1.Thee

6、ntryunderGAAPis:DRBaddebtexpense$30,000CRAllowanceforuncollectibles$30,000BadDebtExpenseAllowanceForUncollectibles$30,000$30,000$15,000Beg.Bal.$45,000GoesOnI/SEnd.Bal.7I.AssessingtheNetRealizableValueofAccountsReceivableAccountsReceivableGrossAllowanceForUncollectibles$1,500,

7、000$45,000AccountsReceivableNetLess=$1,455,000BalanceSheetPresentation=AccountsReceivable(gross)$1,500,000Less:Allowanceforuncollectibles(45,000)AccountsReceivable(net)$1,455,000OR8I.AssessingtheNetRealizableValueofAccountsReceivableAllowanceForUncollectiblesC.Estimatinguncol

8、lectiblereceivables:EstimateofUncollectiblesInthePeriodofSale