Chapter 5 Reviews and Examples (5 pages)

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

Chapter 5 Reviews and Examples



Previewing pages 1, 2 of actual document.

View the full content.
View Full Document
View Full Document

Chapter 5 Reviews and Examples

211 views


Lecture number:
11
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 12 Outline of Last 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 Outline of Current Lecture I Review Examples II E 5 15 III E 5 17 IV E 5 18 V Important Notes Current Lecture Review Sales Sale on acct 1000 sale terms 2 10 net 30 Dr Acct receivable Cr 1000 Revenue 1000 Sales return 100 Dr Sales returns allowance Cr Acct receivable 100 100 Customer pays and takes discount 1000 100 900 02 18 discount if paid in 10 days Dr Cash 882 Dr Sales discount 18 Cr Acct receivable 900 If no discount Dr Cash Cr 900 Acct receivable 900 Allowance method to help estimate uncollectable accounts Matching bad debt expense is recorded in same year as revenues Allow for uncollectable accounts list w assets but subtract it contra asset credit balance Acct receivable 80 000 dr Begin allow balance 500 cr 5 is uncollectable End allow balance needed acct receivable x uncollectable 80 000 05 4000 Bad debt expense 3500 Allow for uncoll accts 3500 Acct receivable real or collectable value 80 000 4000 end 76 000 H Jones company goes bankrupt so 1000 they owe will never get paid write off the account removes acct receivable and reduces allowance for uncollectable acct Allow for uncollectable acct 1000 Acct receivable 1000 Write off 2 for 3700 Allow for uncollectable acct 3700 Acct receivable 3700 90 000 in acct receivable 5 uncollectable 90 000 05 4500 in allow acct as end balance Bad debt expense Allow for uncollectable acct 5200 5200 Affects acct equation assets and equity decrease E 5 15 10 000 note receivable 10 interest rate on note Issued March 15 2013 Due Sept 1 6 month note March 1 Notes receivable 10 000 Legal service revenue 10 000 10 000 10 6 12 500 interest Sept 1 Cash 10 500 Notes receivable 10 000 Interest revenue 500 E 5 17 4 1 12 500 000 note receivable 12 month note receivable 12 interest rate Calculations 500 000 12 60 000 total interest 60 000



View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Chapter 5 Reviews and Examples 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 Chapter 5 Reviews and Examples 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?