Professional Documents
Culture Documents
ACCO 111
Taller Ocho
Profesor Noel Ortiz Torres
Objetivos
1. Identificar los renglones por cobrar y
sus categoras principales.
2. Describir y comparar los dos
mtodos para el reconocimiento de las
cuentas incobrables.
3. Reconocer las notas por cobrar,
calcular los intereses y determinar la
fecha de vencimiento.
Accounts receivable
Sales
500,000
500,000
27,000
27,000
Dec. 13
Cash
Sales discounts
Accounts receivable
($500,000 $27,000)
**
463,540 ***
9,460 **
473,000 *
Direct Write-Of
Theoretically
undesirable:
no matching.
receivable not stated
at net realizable value.
not acceptable for
financial reporting.
Allowance Method
Presentacin en el
Balance Sheet
Assets
Current Assets:
Cash
Accounts receivable
Less: Allowance for doubtful accounts
Merchandise inventory
Prepaid expenses
Total current assets
500
25
$ 346
475
812
40
1,673
Presentacin en el
Balance Sheet
Assets
Current Assets:
Cash
Accounts receivable, net of $25 allowance
for doubtful accounts
Merchandise inventory
Prepaid expenses
Total current assets
$ 346
475
812
40
1,673
($400,000 x 2% = 8,000)
8,000
8,000
On May 11, 2015, Jarnigan Co. determined that Terry Fryes account was
uncollectible and wrote off $1,100. On June 12, 2015, Frye paid the amount
previously written off
May 11 (write-of)
Allowance for doubtful accounts
1,100
Accounts receivable
1,100
June 12 (recovery)
Accounts receivable
Allowance for doubtful accounts
Cash
Accounts receivable
1,100
1,100
1,100
1,100
Valuing
Valuing Accounts
Accounts Receivable
Receivable
Credit sales
Example Data
$500,000
$72,500
8%
Valuing
Valuing Accounts
Accounts Receivable
Receivable
Percentage of Sales
Case 1
Actual balance (credit)
(150)
Case 2
150
Estimated uncollectible
(6,250)
(6,250)
Ending balance
(6,400)
(6,100)
Valuing
Valuing Accounts
Accounts Receivable
Receivable
Percentage of Receivables
Accounts receivable
$ 72,500
8%
5,800
Valuing
Valuing Accounts
Accounts Receivable
Receivable
Percentage of Receivables
Case 1
Actual balance (credit)
Case 2
(150)
150
Desired balance
(5,800)
(5,800)
Adjustment
(5,650)
(5,950)
5,650
5,650
Valuing
Valuing Accounts
Accounts Receivable
Receivable
Percentage of Receivables
Case 1
Actual balance (credit)
Case 2
(150)
150
Desired balance
(5,800)
(5,800)
Adjustment
(5,650)
(5,950)
5,950
5,950
Valuing
Valuing Accounts
Accounts Receivable
Receivable
When estimating losses using Percentage of Receivables,
companies often prepare an aging schedule, which classifies
customer balances by the length of time they have been unpaid.
Valuing
Valuing Accounts
Accounts Receivable
Receivable
Summary
Percentage of Sales approach:
($680,000 x 3% = $20,400)
Cash
Service charge expense
Accounts receivable
659,600
20,400
680,000
(b) On May 10, Dale Company sold merchandise for $3,500 and
accepted the customers America Bank MasterCard. America Bank
charges a 4% service charge for credit card sales. Prepare the entry on
Dale Companys books to record the sale of merchandise.
($3,500 x 4% = $140)
Cash
Service charge expense
Sales
3,360
140
3,500
Notes Payable
Companies may grant credit in exchange
for a promissory note. A promissory note
is a written promise to pay a specified
amount of money on demand or at a
definite time.
Promissory notes may be used:
1. when individuals and companies lend
or borrow money,
2. when amount of transaction and credit
Notes
Notes Receivable
Receivable
To the Payee, the promissory note is a note
receivable.
To the Maker, the promissory note is a note
payable.
Computing Interest
Notes receivable
15,000
Cash
Dec. 11
Notes receivable
15,000
6,750
Sales
Dec. 16
Notes receivable
Accounts receivable
6,750
4,000
4,000
Dec. 31
Interest receivable
Interest revenue
295
295
Notes receivable
7,600
Cash
(b)
7,600
7,942
Notes receivable
7,600
Interest revenue
342
Analysis of Receivables
Analysis of Receivables