财务会计英文版 08 PPT

8-1Accounting,5/EGUOWEIHUSTAccountsandNotesReceivableChapter818-2Accounting,5/EGUOWEIHUSTAccountsreceivableReceivablesNotesreceivable28-3Accounting,5/EGUOWEIHUSTDesigninternalcontrolsforreceivables.Objective138-4Accounting,5/EGUOWEIHUSTEstablishingInternalControlWhataresomecontrolsoveraccountsreceivable?SeparationofdutiesApprovalforwrite-offControlovermailreceipts48-5Accounting,5/EGUOWEIHUSTTheCreditDepartmentCompaniesgrantcredittocustomersinordertoincreasesales.Thecreditdepartmentevaluatescustomerswhoapplyforcreditcards.58-6Accounting,5/EGUOWEIHUSTUncollectibleAccountsExpenseAllowancemethodDirectwrite-offmethod68-7Accounting,5/EGUOWEIHUSTUsetheallowancemethodtoaccountforuncollectiblesandestimateuncollectiblesbythepercentofsalesandagingapproaches.Objective278-8Accounting,5/EGUOWEIHUSTMethodsforEstimatingUncollectibleExpensePercentageofSalesAgingofReceivables88-9Accounting,5/EGUOWEIHUSTPercentageofSalesThisisalsocalledtheincomestatementapproach.Itisbasedonpriorexperienceofthebusiness.Itiscomputedasapercentageofcreditsales.Itignoresthecurrentbalanceoftheallowanceaccount.Thepercentageusedisadjustedasneededtoreflectcollectionexperience.98-10Accounting,5/EGUOWEIHUSTPercentageofSalesExampleThecreditdepartmentofAna’sBoutiqueestimates(basedonpriorexperience)that1%ofnetcreditsalesareuncollectible.Netcreditsalesfortheyearjustendedwere$500,000.Whatistheadjustingentry?$500,000×1%=$5,000108-11Accounting,5/EGUOWEIHUSTPercentageofSalesExampleDec31,200xUncollectibleAccountExpense5,000AllowanceforUncollectibleAccounts5,000Recordedexpensefortheyear118-12Accounting,5/EGUOWEIHUSTDecreaseinNetIncomeDecreaseinnetAccountsReceivableWhatistheeffectofthisadjustingentry?PercentageofSalesExample128-13Accounting,5/EGUOWEIHUSTAgingofAccountsReceivableThisapproachisalsocalledthebalancesheetapproachbecauseitfocusesonaccountsreceivable.Individualaccountsreceivablefromspecificcustomersareanalyzedaccordingtothelengthoftimetheyremainoutstanding.138-14Accounting,5/EGUOWEIHUSTAgingofReceivablesExampleAssumethatInternationalHospital’spastcollectionexperienceindicatesthefollowing:Lengthoftime%uncollectible1-30days2.031-60days3.061-90days5.090+days8.0148-15Accounting,5/EGUOWEIHUSTAccountsReceivableAllowanceforUncollectibleAccountsLengthAmount%1-30$1,900,0002$38,00031-601,000,000330,00061-90700,000535,00090+500,000840,000Total$4,100,000$143,000AgingofReceivablesExample158-16Accounting,5/EGUOWEIHUSTAgingofReceivablesExampleTheallowanceaccountisadjustedtothis$143,000balance:Assumethattheaccountcurrentlyhasacreditbalanceof$100,000.Whatistheadjustment?168-17Accounting,5/EGUOWEIHUSTUncollectibleAccountExpense43,000AllowanceforUncollectibleAccounts43,000TorecordallowanceforuncollectiblesWhatiftheaccounthadadebitbalanceof$1,000?AgingofReceivables178-18Accounting,5/EGUOWEIHUSTAllowanceforUncollectibleAdjustment1,000144,000Adjustedbalance143,000AgingofReceivables188-19Accounting,5/EGUOWEIHUSTComparingthePercentageofSalesandAgingMethodsAllowanceMethodPercentofSalesMethodAgingofAccountsReceivableMethodAdjustsAllowanceforUncollectibleAccountsAdjustsAllowanceforUncollectibleAccountsBYTOUNCOLLECTIBLEACCOUNTEXPENSEUNCOLLECTIBLEACCOUNTSRECEIVABLEAmountofAmountof198-20Accounting,5/EGUOWEIHUSTWritingOffUncollectibleAccountsWhathappenswhenitbecomesapparentthatanaccountwillnotbecollected?Itmustbewrittenoff.How?DebitAllowanceforUncollectibleAccounts.CreditAccountsReceivable.208-21Accounting,5/EGUOWEIHUSTRecoveriesHowisthecollectionofapreviouslywritten-offaccountrecorded?DebitAccountsReceivable(toreinstatetheaccount).CreditAllowanceforUncollectibleAccounts.DebitCash.CreditAccountsReceivable(torecordthecollection).218-22Accounting,5/EGUOWEIHUSTUsethedirectwrite-offmethodtoaccountforuncollectibles.Objective3228-23Accounting,5/EGUOWEIHUSTDirectWrite-OffMethodUsingthismethod,anaccountiswrittenoffonlywhenitbecomesuncollectible.Noallowanceaccountiscreated.Thismethodissimpletouse.Thebalancesheetisoverstated.Theincomestatementisunderstated.238-24Accounting,5/EGUOWEIHUSTCreditCardandBankcardSalesThesesaveretailersthecostofacreditdepartment.Theretailerisrequiredtopayafee(calledadiscount)forusage.248-25Accounting,5/EGUOWEIHUSTCreditCardandBankcardSalesHowwouldAna’sBoutiquerecorda$100creditcardsalewitha2%servicecharge?AccountsReceivable(creditcard)98CreditCardDiscount2SalesRevenue100Torecordacreditcardsaleof$100lessa2%servicechargefee258-26Accounting,5/EGUOWEIHUSTDebitCardSalesUsingadebitcardislikepayingwithcash.268-27Accounting,5/EGUOWEIHUSTNotesReceivable:anOverviewAnotereceivablemayarisefromasaleormaybegiveninsettlementofanaccountreceivable.Themakerpaysthepayeethematurityvalue.Thematurityvalueincludesprincipalplusinterest.278-28Accounting,5/EGUOWEIHUSTPromissoryNote$10,000.00Nov.30,2001Forvaluereceived,IpromisetopaytotheorderofPOPULARBANKHOUSTON,TEXASTENTHOUSANDANDNO/100…………DOLLARSONFEBRUARY28,2002Plusinterestattheannualrateof10percent.__________MakerPayeeNotesReceivable:anOverview288-29Accounting,5/EGUOWEIHUSTPromissoryNote$10,000.00Nov.3