Receivables and Sales (5 pages)

Previewing pages 1, 2 of actual document. View the full content.
View Full Document

Receivables and Sales



Previewing pages 1, 2 of actual document.

View the full content.
View Full Document
View Full Document

Receivables and Sales

180 views


Lecture number:
10
Pages:
5
Type:
Lecture Note
School:
University of Arizona
Course:
Acct 200 - Introduction to Financial Accounting
Edition:
1

Unformatted text preview:

ACCT 200 1st Edition Lecture 10 Outline of Last Lecture I Chapter 1 Review II Chapter 2 Review III Chapter 3 Review IV Chapter 4 Review Outline of Current Lecture I Receivables II E 5 1 III Discounts IV E 5 3 V E 5 4 VI E 5 6 VII Allowance for Uncollectible Accounts VIII BE 5 4 IX BE 5 5 X Review and Examples Current Lecture Accounts receivable means a customer owes money Nontrade receivables and notes receivable are receivables not from customers E 5 1 5 1 Acct receivable 3000 Service revenue 5 13 Cash 3000 3000 Acct receivable 3000 Discounts Sales discount incentive to pay quickly 2 10 n 30 means customer receives 2 discount if they pay within 10 days no discount if over 10 days still must be within 30 days Sales discount contra revenue account debit balance reduces revenues E 5 3 10 000 sale term 3 10 net 30 10 000 03 300 10 000 300 discount 9700 amount owed 3 12 Acct receivable 10 000 Revenue 3 20 10 000 Cash 9700 Sales discount 300 Acct receivable 10 000 E 5 4 Pay in 25 days no discount 3 12 Acct receivable 10 000 Revenue 4 6 Cash 10 000 10 000 Acct receivable 10 000 E 5 6 4 25 Acct receivable 2500 Revenue 4 27 Sales allowance 2500 500 Acct receivable 4 30 Cash 2000 Acct receivable Income statement Revenue 2500 sales allowance 500 Net revenue 2000 T account 500 2000 Acct Receivable Sale on Returns acct Allowance Payments from End balance Allowance for Uncollectible Accounts Accounts receivable 20 allow for uncoll accts 6 contra asset Net acct receivable 14 net realizable value Write off means the company is never going to receive the money Balance of uncollectible accounts means either overestimated last period still waiting on some accounts receivable BE 5 4 Beginning allowance for doubtful accounts 2000 Needed balance for accounts 10 000 1 Amount to adjust end balance existing balance 10 000 2000 8000 adjust increase by 2 Journal entry Dr Bad debt expense 8000 Cr Allow for uncoll acct 8000 BE 5 5 Beginning allowance balance 2000 dr too many bad debts



View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Receivables and Sales and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Receivables and Sales and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?