TAILIEUCHUNG - Lecture Survey of accounting (4/e) - Chapter 5: Accounting for receivables and inventory cost flow

In this chapter, you will be able to: Explain how the allowance method of accounting for uncollectible accounts affects financial statements, use the percent of revenue method to estimate the uncollectible accounts expense, use the percent of receivables method to estimate the uncollectible accounts expense,. | Chapter Five Accounting for Receivables and Inventory Cost Flow © 2015 McGraw-Hill Education. 1 Most companies do not expect to collect the full amount (face value) of their accounts receivable. Even carefully screened credit customers sometimes don’t pay their bills. The net realizable value of accounts receivable represents the amount of receivables a company estimates it will actually collect. The net realizable value is the face value less an allowance for doubtful accounts. Net Realizable Value of Accounts Receivable 5-2 2 Revenue Recognition Event 1: Revenue Recognition During 2014, Allen’s Tutoring Services recognized $14,000 of service revenue earned on account. 5-3 3 Collection for Receivables Event 2: Collection of Receivables Allen’s Tutoring Services collected $12,500 cash from accounts receivable in 2014. 5-4 4 Recognizing Uncollectible Account Expense Event 3 Recognizing Uncollectible Accounts Expense Allen’s Tutoring Services recognized uncollectible accounts expense .

• Kế toán - Kiểm toán
• Survey of accounting
• Lecture Survey of accounting
• Accounting for receivables
• Inventory cost flow
• Uncollectible accounts
• Accounts receivable
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Financial statements
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method