PPT-LESSON 14-1 Uncollectible Accounts Receivable

LO 1 Explain the purpose of the allowance method for recording losses from uncollectible accounts LO 2 Estimate uncollectible accounts expense using an aging of accounts receivable LO 3. Receivables, Bad Debt Expense, and Interest Revenue. PowerPoint Authors:. Brandy Mackintosh. Lindsay . Heiser. Learning Objective 8-1. Describe the trade-offs of extending credit.. Pros and Cons of Extending Credit. Understand cash and accounts receivable from a business perspective.. Define financial assets, and identify items that are considered cash and cash equivalents and how they are reported.. Define receivables and identify the different types of receivables from an accounting perspective.. Chapter 5. Summary. Short-Term (Trading) Investments. 3 Transactions. Initial purchase. Period End Adjustment. Sale of Investment. Reporting ST Investments. Year of Purchase. Balance Sheet. Market Value of Investment. Investments. Notes receivables. Accounts receivables. Loans to employees. Which of the following is included in “Other Receivables”?. Investments. Notes receivables. Accounts receivables. Loans to employees. Receivables, Bad Debt Expense, and Interest Revenue. PowerPoint Authors:. Brandy Mackintosh. Lindsay . Heiser. Learning Objective 8-1. Describe the trade-offs of extending credit.. Pros and Cons of Extending Credit. Receivables. , and Cash. Chapter 6. McGraw-Hill/Irwin. © 2009 The McGraw-Hill Companies, Inc.. When companies allow customers to purchase merchandise on an . open account. , the customer promises to pay the company in the future for the purchase.. Chapter 6. Learning Objectives. After studying this chapter, you should be able to:. Describe the common classifications of receivables. Describe the nature of and the accounting for uncollectible receivables. 9. Learning Objectives. Explain how companies . recognize accounts . receivable.. Describe how companies . value accounts . receivable and record . their disposition. .. Explain how companies . recognize notes . LO. 1. . . Calculate and record uncollectible accounts expense using the direct write-off method.. LESSON. 6-1. Direct Write-Off. Method of Recording. Uncollectible Accounts. Direct Write-Off of Losses from Uncollectible Accounts. pp. 411-417. Three . Approaches. I) Using the Income Statement. II)Using the Balance . Sheet. III)Aging Accounts Receivable Approach. I) Estimating Bad Debts Using the Income Statement. Example: Credit sales = $400,000 in 2006. Based on past experience, the company estimates that 0.6% of credit sales will be uncollectible. . Acct 2210 . Chapter . 7. (Omit . pg. 370-373). McGraw-Hill/Irwin. McGraw-Hill/Irwin. Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.. Explain how the allowance method of accounting for uncollectible accounts affects financial statements.. BE 8-2, p 427. REPORTING AND ANALYZING RECEIVABLES. Accounting. , Fifth Edition. 8. After studying this chapter, you should be able to:. Identify the different types of receivables.. Accounts Receivable accounting issues:. Sales . on . Account. LO. 1. . Explain the relationship between the . accounts receivable ledger and its . controlling account.. LO. 2. Record sales on account using a . sales journal.. Learning Objectives. Sales and Collection Cycle:. Accounts Receivable. Chapter 15. Learning Objective 1. Describe the methodology. for designing tests of details. of balances using the. audit risk model.. Accounts Receivable Balance-Related Audit Objectives.