财务会计专业英语-(9)

©2009TheMcGraw-HillCompanies,Inc.,AllRightsReservedACCOUNTINGFORRECEIVABLESChapter9McGraw-Hill/IrwinSlide2McGraw-Hill/IrwinSlide2ACCOUNTSRECEIVABLEAmountsduefromcustomersforcreditsales.Creditsalesrequire:Maintainingaseparateaccountreceivableforeachcustomer.Accountingforbaddebtsthatresultfromcreditsales.C1McGraw-Hill/IrwinSlide3McGraw-Hill/IrwinSlide3RECOGNIZINGACCOUNTSRECEIVABLEAbercombie&FitchPfizerCallawayGoldOakley1.9%8.2%14.0%17.0%AccountsReceivableasaPercentofTotalAssetsSalesonCreditCreditsalesarerecordedbyincreasing(debiting)AccountsReceivable.Acompanymustalsomaintainaseparateaccountforeachcustomerthattrackshowmuchthatcustomerpurchases,hasalreadypaid,andstillowes.C1McGraw-Hill/IrwinSlide4McGraw-Hill/IrwinSlide4TechComastwomajorcreditcustomers(1)CompStoreowesthecompany$2,000onaccount,and(2)RDAElectronicsowes$1,000onaccountatJune30,2009.OnJuly1st,TechComsells$950ofmerchandiseonaccounttoCompStore,andcollects$720cashfromRDAasapaymentonaccount.SALESONCREDITDRCRJul1AccountsReceivable-CompStore950Sales950TorecordcreditsalestoCompStoreCash720AccountsReceivable–RDAElectronics720TorecordcreditsalestoRDAElectronicsC1McGraw-Hill/IrwinSlide5McGraw-Hill/IrwinSlide5SALESONCREDITDatePRDebitCreditBalanceJun301,0001,000Jul1720280CompStoreDatePRDebitCreditBalanceJun302,0002,000Jul19502,950AccountsReceivableLedgerRDAElectronicsRDAElectronics280$CompStore2,950Total3,230$ScheduleofAccountsReceivableDatePRDebitCreditBalanceJul13,2303,230GeneralLedgerAccountsReceivableC1McGraw-Hill/IrwinSlide6McGraw-Hill/IrwinSlide6Advantagesofallowingcustomerstousecreditcards:Customers’creditisevaluatedbythecreditcardissuer.Therisksofextendingcreditaretransferredtothecreditcardissuer.Cashcollectionsarequicker.Salesincreasebyprovidingpurchaseoptionstothecustomer.CREDITCARDSALESC1McGraw-Hill/IrwinSlide7McGraw-Hill/IrwinSlide7Withbankcreditcards,thesellerdepositsthecreditcardsalesreceiptinthebankjustlikeitdepositsacustomer’scheck.Thebankincreasesthebalanceinthecompany’scheckingaccount.Thecompanyusuallypaysafeeof1%to5%fortheservice.CREDITCARDSALESC1McGraw-Hill/IrwinSlide8McGraw-Hill/IrwinSlide8OnJuly15th,TechComhas$100ofcreditcardsaleswitha4%fee,andits$96cashisreceivedimmediatelyondeposit.CREDITCARDSALESDRCRJul15Cash96CreditCardExpense4Sales100TorecordcreditcardsalesandfeesC1McGraw-Hill/IrwinSlide9McGraw-Hill/IrwinSlide9CREDITCARDSALESDRCRJul.15AccountsReceivable-CreditCardCo.96CreditCardExpense4Sales100Torecordcreditcardsalesandfees.Jul.28Cash96AccountsReceivable-CreditCardCo.96TorecordreceiptfromcreditcardcompanyIfinsteadTechCommustremitelectronicallythecreditcardsalesreceiptstothecreditcardcompanyandwaitforthe$96cashpayment,wewillmakethefirstentryonJuly15th,andthesecondentryonJuly28th,whenthecashisreceived.C1McGraw-Hill/IrwinSlide10McGraw-Hill/IrwinSlide10INSTALLMENTACCOUNTSRECEIVABLEAmountsowedbycustomersfromcreditsalesforwhichpaymentisrequiredinperiodicamountsoveranextendedtimeperiod.Thecustomerisusuallychargedinterest.C1McGraw-Hill/IrwinSlide11McGraw-Hill/IrwinSlide11Somecustomersmaynotpaytheiraccount.Uncollectibleamountsarereferredtoasbaddebts.Therearetwomethodsofaccountingforbaddebts:DirectWrite-OffMethodAllowanceMethodVALUINGACCOUNTSRECEIVABLEP1McGraw-Hill/IrwinSlide12McGraw-Hill/IrwinSlide12OnJanuary23rd,J.Kent,acustomerofTechComcannotpaythe$520owedtoTechCom.Wemustrecognizetheloss.DIRECTWRITE-OFFMETHODDRCRJan23BadDebtsExpense520AccountsReceivable-J.Kent520Towrite-offuncollectibleaccountP1McGraw-Hill/IrwinSlide13McGraw-Hill/IrwinSlide13OnMarch11th,J.KentwasabletomakefullpaymenttoTechComfortheamountpreviouslywritten-off.DIRECTWRITE-OFFMETHODDRCRMar11AccountsReceivable-J.Kent520BadDebtsExpense520Toreinstateaccountpreviouslywritten-offMar11Cash520AccountsReceivable-J.Kent520TorecordpaymentonaccountP1McGraw-Hill/IrwinSlide14McGraw-Hill/IrwinSlide14MATCHINGVS.MATERIALITYMatchingrequiresexpensestobereportedinthesameaccountingperiodasthesalestheyhelpproduce.Materialitystatesthatanamountcanbeignoredifitseffectonthefinancialstatementsisunimportanttousers’businessdecisions.P2McGraw-Hill/IrwinSlide15McGraw-Hill/IrwinSlide15Attheendofeachperiod,estimatetotalbaddebtsexpectedtoberealizedfromthatperiod’ssales.Therearetwoadvantagestotheallowancemethod:1.Itrecordsestimatedbaddebtsexpenseintheperiodwhentherelatedsalesarerecorded.2.Itreportsaccountsreceivableonthebalancesheetattheestimatedamountofcashtobecollected.ALLOWANCEMETHODP2McGraw-Hill/IrwinSlide16McGraw-Hill/IrwinSlide16RECORDINGBADDEBTSEXPENSEAttheendofitsfirstyearofoperations,TechComestimatesthat$1,500ofitsaccountsreceivablewillproveuncollectible.ThetotalaccountsreceivablebalanceatDecember31,2009,is$20,000,andthecompanyhadtotalcreditsalesof$300,000duringtheyear.DRCRDec.31BadDebtsExpense1,500AllowanceforDoubtfulAccounts1,500TorecordestimatedbaddebtsContra-assetaccountBal.20,000AccountsReceivableDec.311,500AllowanceforDoubtfulAccountsP2McGraw-Hill/IrwinSlide17McGraw-Hill/IrwinSlide17BALANCESHEETPRESENTATIONCashAccountsreceivable20,000$Less:Allowancefordoubtfulaccounts1,50018,500$TechComP