tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Chapter 8 - Kimmel, Weygandt, Kieso

Chapter 8 - Reporting and analyzing receivables. After studying this chapter, you should be able to: Identify the types of receivables and record accounts receivable transactions, account for bad debts, account for notes receivable, explain the statement presentation of receivables, apply the principles of sound accounts receivable management. | REPORTING AND ANALYZING RECEIVABLES Accounting, Fifth Edition 8 After studying this chapter, you should be able to: Identify the different types of receivables. Explain how accounts receivable are recognized in the accounts. Describe the methods used to account for bad debts. Compute the interest on notes receivable. Describe the entries to record the disposition of notes receivable. Explain the statement presentation of receivables. Describe the principles of sound accounts receivable management. Identify ratios to analyze a company’s receivables. Describe methods to accelerate the receipt of cash from receivables. Learning Objectives Preview of Chapter 8 Accounting Fifth Edition Kimmel Weygandt Kieso Amounts due from individuals and companies that are expected to be collected in cash. Amounts customers owe on account that result from the sale of goods and services. Accounts Receivable Types of Receivables LO 1 Identify the different types of receivables. Written promise (formal instrument) for amount to be received. Also called trade receivables. Nontrade receivables such as interest, loans to officers, advances to employees, and income taxes refundable. Notes Receivable Other Receivables Amounts due from individuals and companies that are expected to be collected in cash. Types of Receivables LO 1 Identify the different types of receivables. Illustration 8-1 Two accounting issues: Recognizing accounts receivable. Valuing accounts receivable. Accounts Receivable LO 2 Explain how accounts receivable are recognized in the accounts. Service organization - records a receivable when it performs service on account. Merchandiser - records accounts receivable at the point of sale of merchandise on account. Recognizing Accounts Receivable Illustration: Assume that Jordache Co. on July 1, 2014, sells merchandise on account to Polo Company for $1,000 terms 2/10, n/30. Prepare the journal entry to record this transaction on the books of Jordache Co. Accounts receivable 1,000 | REPORTING AND ANALYZING RECEIVABLES Accounting, Fifth Edition 8 After studying this chapter, you should be able to: Identify the different types of receivables. Explain how accounts receivable are recognized in the accounts. Describe the methods used to account for bad debts. Compute the interest on notes receivable. Describe the entries to record the disposition of notes receivable. Explain the statement presentation of receivables. Describe the principles of sound accounts receivable management. Identify ratios to analyze a company’s receivables. Describe methods to accelerate the receipt of cash from receivables. Learning Objectives Preview of Chapter 8 Accounting Fifth Edition Kimmel Weygandt Kieso Amounts due from individuals and companies that are expected to be collected in cash. Amounts customers owe on account that result from the sale of goods and services. Accounts Receivable Types of Receivables LO 1 Identify the different types of receivables. Written promise (formal .